Nestlé’s Health Science unit has agreed to purchase a majority stake in Orgain, a plant-based nutrition company founded by Dr. Andrew Abraham and Butterfly Equity, who will continue to be minority share owners.
Established in 2009, Orgain has grown to become a leading plant-based protein powder and ready-to-drink shake brand in the US.
Nestlé stated that Orgain will complement Health Science’s existing portfolio of nutrition products.
“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, CEO of Nestlé 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.”
The transaction is subject to customary regulatory approvals. The financial terms of the deal were not revealed but Nestlé said that it is expected to be slightly accretive to the group’s organic growth, while slightly dilutive to underlying trading profit margin in 2022. The agreement includes the option for Nestlé Health Science to fully acquire Orgain in 2024.
