LOS ANGELES – Orgain, a manufacturer of organic nutrition products, will be acquired by Butterfly. The Los Angeles-based private equity firm specializes in the food sector.
Earlier this month, both companies announced Butterfly had signed an agreement to purchase a majority stake in the company. Orgain’s Founder Dr. Andrew Abraham, M.D. will retain a significant minority ownership position and will continue as Chief Executive Officer.
“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,” Abraham said in a statement.
A cancer survivor, Abraham launched Orgain in 2009 with the industry’s first organic ready-to-drink nutrition shake.
According to Orgain’s website, Abraham was diagnosed with a rare and aggressive form of cancer in his teens.
“During chemo and radiation, I lost my appetite entirely and experienced alarming weight loss,” he said. “When my doctors recommended nutrition shakes to get my weight up, the only options available were full of unhealthy and synthetic ingredients. So my mother and I started making our own organic shakes at home.
“The power of clean nutrition stayed with me as I entered my medical career. As I treated patients, I was consumed by the idea that I could help millions more people a day by bringing a healthier, organic nutrition shake to the market.”
Abraham took that desire to help others and quit his medical practice to start Orgain.
Since then, the company has produced numerous organic nutrition products from protein powders to shakes and bars.
Ontario Teachers’ Pension Plan, a limited partner of Butterfly, will also be a new minority investor alongside Butterfly and Abraham.