Private equity firm Butterfly to acquire majority stake in Orgain

Los Angeles-based food sector-specializing private equity firm Butterfly has announced that it has signed a definitive agreement to acquire a majority stake in Irvine, CA-based clean nutrition brand Orgain.

Orgain produces organic and clean nutrition products. It serves millions of individuals across the contiguous United States. It was founded in 2009 by physician and cancer survivor Dr. Andrew Abraham, M.D. to offer more convenient and healthier nutrition choices to his patients. The company sells organic ready-to-drink nutrition shakes, protein powders and bars. Orgain says it focuses on organic, protein-rich, clean ingredients. It offers both plant-based and grass-fed dairy-based products.

It is Butterfly’s fifth investment within the private equity firm’s “seed to fork” approach to investing in food across foodservice, agriculture, food and beverage products, aquaculture and food distribution.

Dr. Abraham will retain a significant minority ownership position in the business. He will also keep working as the chief executive officer.

Another new minority investor in the company will be Ontario Teachers’ Pension Plan, which is a limited partner of Butterfly.  

Dr. Abraham said on the occasion, “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. 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.”

The acquisition will allow for Orgain to scale its purpose-driven brand and broaden its reach.

Butterfly co-founder Adam Waglay stated, “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.”

He added, “Orgain’s success is driven by the authenticity, purpose and passion that Andrew brings to everything he does.”

Butterfly co-founder Dustin Beck said, “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.”

Image credit - Downtowngal (CC BY-SA 3.0)