Los Angeles-based private equity firm Butterfly has signed an agreement to acquire a majority stake in Orgain, a US producer of meal replacement shakes, protein powders and snack bars.
Founded in 2009 by physician Andrew Abraham, Orgain has a focus on organic, protein-rich and clean ingredients.
Butterfly said the partnership will allow for an increased focus to be placed on expanding consumer awareness of the Orgain brand, product innovation and global distribution.
Abraham will retain a significant minority ownership in the business and will continue in the role of CEO.
“In spending time with the Butterfly team it was apparent that they shared our values and understood our mission to positively impact consumers across the world with our clean and delicious nutrition product,” said Abraham.
“We are excited about this next phase of growth for our brand, the ability to expand globally and the opportunity to inspire so many more healthy vibrant lives.”
Butterfly drew attention to Orgain’s success within both plant-based and dairy-based sectors.
Butterfly said the partnership will enable Orgain to scale its brand and grow consumer awareness.
“Having been in close touch with Andrew for years, we continue to be impressed year after year by the loyal following and trajectory of the business he’s built,” said Butterfly co-founder Adam Waglay. “Orgain’s success is driven by the authenticity, purpose and passion that Andrew brings to everything he does.”
Butterfly co-founder Dustin Beck added: “Orgain has built an industry-leading platform of clean, nutritious products that have only scratched the surface of their potential. It has already had a massive impact in hospitals, locker rooms and homes across the world and we’re excited to help amplify its reach.”
Ontario Teachers’ Pension Plan, a limited partner of Butterfly, will also be a new minority investor in Orgain alongside Butterfly and Abraham.
Orgain is Butterfly’s fifth investment within its ‘seed to fork’ approach to investing in food across agriculture, aquaculture, food and beverage products, food distribution and foodservice.
Earlier this year, the firm agreed to acquire Campbell Soup’s Bolthouse Farms division for approximately $510 million.
© FoodBev Media Ltd 2019