Nestlé Health Science has agreed to purchase a majority stake in Orgain, a leader in plant-based nutrition, from founder Dr. Andrew Abraham and Butterfly Equity, who will continue to be minority share owners. Orgain complements Nestlé Health Science's existing portfolio of nutrition products that support healthier lives.
"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 U.S., and we look forward to combining our companies' expertise to bring Orgain to more people around the world."
Orgain was founded in 2009 in California by Dr. Abraham, an integrative medicine specialist and cancer survivor. He developed the protein-based shakes, powders and snacks based on his belief that everyone deserves access to good, clean nutrition. Orgain has grown to become the leading plant-based protein powder and leading organic nutritional protein ready-to-drink shake in the U.S.
"Nestlé Health Science and Orgain share the same philosophy: better nutrition can change lives," said Dr. Abraham, CEO and Founder of Orgain. "As someone who has experienced the power of clean, protein-based nutrition, and as a physician, it's been important for me to help as many people as possible to live their most vibrant lives. We've worked hard to develop innovative products that make a real difference in consumers' lives, and now through Nestlé Health Science's capabilities, resources and dedication to nutrition, we will be able to reach more people around the world." Dr. Abraham will continue to serve as CEO of Orgain.
The transaction is subject to customary regulatory approvals. The deal is expected to be slightly accretive to Nestlé's organic growth, while slightly dilutive to the Group's underlying trading profit margin in 2022. The agreement includes the option for Nestlé Health Science to fully acquire Orgain in 2024.
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