VEVEY, SWITZERLAND – Nestle Health Science, a business unit of Nestle SA, is acquiring a majority stake in Orgain, Irvine, Calif., a plant-based nutrition company that manufactures and markets powders, ready-to-drink beverages and nutrition bars. Terms of the acquisition were not disclosed.
Andrew Abraham, Phd, founder of Orgain, and Butterfly Equity, a private equity investor with a stake in the company, will remain minority investors. The agreement includes the option for Nestle to fully acquire Orgain in 2024.
“Nutritional protein plays a key role in supporting our health and wellness, whether we enjoy an active lifestyle or are facing health challenges,” said Greg Behar, chief executive officer of Nestle Health Science. “Orgain’s emphasis on clean, all natural, plant-based, organic ingredients has made it a leader in the US, and we look forward to combining our companies’ expertise to bring Orgain to more people around the world.”
Butterfly Equity, Los Angeles, and two other investors — the Ontario Teachers’ Pension Plan Board and DCP Capital — acquired a majority stake in Orgain in November 2019.
“We are confident that Orgain is still in the early innings of achieving its ultimate potential and are thrilled that we have the opportunity to continue to be a part of that journey together with Nestle Health Science,” said Adam Waglay, co-founder of Butterfly.Nestle Health Science is a business unit of Nestle that consists of consumer health, medical nutrition and supplement brands. In May 2021, the unit acquired Nuun, a maker of low-sugar electrolyte tablets that dissolve in water. In April, the business acquired supplement company The Bountiful Co. for $5.75 billion.