Orgain gets boost from Bolthouse owner to increase nutritional snacking footprint

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Butterfly plans to scale Orgain's purpose-driven brand and expand its reach and positive impact. Pic: GettyImages/monkeybusinessimages

Private equity firm Butterfly has acquired a majority stake in Orgain to expand the nutrition specialist’s portfolio further into convenience snacking.

This is Butterfly’s fifth investment within its ‘seed to fork’ approach of investing in innovators across agriculture, aquaculture, food and beverage products, food distribution and foodservice.

Earlier this year, the Los Angeles-based firm acquired Campbell Soup’s Bolthouse Farms division for approximately $510m.

Organic, clean and protein-rich

California-based Orgain – founded in 2009 by Dr Andrew Abraham – produces a range of plant- and dairy-based protein-rich snack bars, meal replacement shakes and protein powders, using only ‘clean’ ingredients, most of which are certified organic.

Butterfly said the partnership will allow for an increased focus to be placed on boosting consumer awareness of the Orgain brand, as well as fast-tracking product innovation and global distribution.

“Orgain has built an industry-leading platform of clean, nutritious products that have only scratched the surface of their potential,” said Dustin Beck, co-founder of Butterfly.

“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.”

Dr Abraham will retain a minority ownership of Orgain 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 Dr 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.”

Ontario Teachers’ Pension Plan, a limited partner of Butterfly, will also be a new minority investor in Orgain alongside Butterfly and Abraham. Bolthouse founder and CEO Jeff Dunn – who is also an operating partner at Butterfly – will assist Orgain in achieving these goals. Kirkland & Ellis and The Giannuzzi Group acted as legal advisors to Butterfly and Orgain, respectively.

Terms of the deal – which is expected to close at the end of November – were not disclosed.