Butterfly, a Los Angeles-based private equity firm specializing in the food sector, announced that it has signed a definitive agreement to acquire a majority stake in Orgain, Inc.
Based in Irvine, Calif., Orgain is a producer of high-quality, great-tasting, organic and clean nutrition products. Orgain was founded in 2009 by physician and cancer survivor Dr. Andrew Abraham, M.D., to provide healthier and more convenient nutrition options to his patients. Today, it serves millions of individuals seeking to lead healthier, more vibrant lives including professional athletes, wellness enthusiasts, cancer patients and everyone in between. The Company launched with the industry’s first organic ready-to-drink nutrition shake in 2009 and since has developed a broad portfolio of category-leading products spanning across protein powders, shakes and bars with a focus on organic, protein-rich, clean ingredients. Orgain is unique in its success across product formats and within both plant-based and grass-fed dairy-based offerings.
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. Dr. Andrew Abraham will retain a significant minority ownership position in the business and will continue in the role of chief executive officer going forward. Ontario Teachers’ Pension Plan, a Limited Partner of Butterfly, will also be a new minority investor in Orgain alongside Butterfly and Dr. Abraham.
The partnership will enable Orgain to scale its purpose-driven brand and expand its reach and positive impact. In particular, it will allow for an increased focus to be placed on expanding consumer awareness, product innovation and global distribution.
Kirkland & Ellis LLP and The Giannuzzi Group, LLP acted as legal advisors to Butterfly and Orgain, respectively. Piper Jaffray acted as financial advisor to Orgain. This transaction is subject to customary closing conditions.
