Private equity firm Butterfly has signed a deal to divest a majority stake in Orgain, a plant-based functional nutrition platform, to Nestlé Health Science.

The financial terms of the deal were not disclosed.

Butterfly and Orgain’s Founder and CEO – Dr. Andrew Abraham will retain a significant minority stake in the company that makes protein-based shakes, powders and snacks.

Dr. Andrew Abraham will continue in his role of CEO of Orgain, which is based in California.

Founded in 2009, the company is engaged in preparing plant-based and organic protein powder, protein shakes, and nutritional shakes.

Dr. Andrew Abraham said: “Orgain was a mission before it became a company. Today, in partnering with Nestlé Health Science, we take a giant leap forward in pursuing that mission of providing accessible, healthy nutrition for all.

“Nestlé Health Science shares that mission and will help us to get better, cleaner nutrition products into the hands of more consumers than I ever imagined possible when I founded this company twelve years ago.”

Butterfly, which invests in the food sector, had acquired a majority stake in Orgain alongside Ontario Teachers’ Pension Plan Board and DCP Capital in late 2019. Both Ontario Teachers’ and DCP Capital will maintain minority ownership in the functional nutrition platform.

Nestlé Health Science has an option to take full ownership of Orgain in 2024. The Swiss company said that Orgain complements its existing portfolio of nutrition products.

Greg Behar — CEO of Nestlé Health Science said: “Nutritional protein plays a key role in supporting our health and wellness, whether we enjoy an active lifestyle or are facing health challenges.

“Orgain’s emphasis on clean, all natural, plant-based, organic ingredients has made it a leader in the U.S., and we look forward to combining our companies’ expertise to bring Orgain to more people around the world.”

The closing of the deal is contingent on receiving customary regulatory approvals.

  Butterfly, California, DCP Capital, Dr. Andrew Abraham, Greg Behar, Nestlé Health Science, Ontario Teachers’ Pension Plan Board, Orgain