Nestlé Health Science has announced an agreement 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.
Nestlé said Orgain will complement Nestlé 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, chief executive 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."
Orgain was founded in 2009 in California by Dr. Abraham, an integrative medicine specialist and cancer survivor. The brand’s range includes protein-based shakes, powders and snack, and Orgain is the leading plant-based protein powder and leading organic nutritional protein ready-to-drink shake in the US.
"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," said Dr. Abraham, founder and chief executive of Orgain.
Dr. Abraham will continue to serve as the chief executive of Orgain.
The transaction is subject to customary regulatory approvals, and the agreement includes the option for Nestlé Health Science to fully acquire Orgain in 2024.
Nestlé said the deal is expected to be slightly accretive to its organic growth, while slightly dilutive to the group's underlying trading profit margin in 2022.