Butterfly Equity Explores Options for Protein Powder Maker Orgain

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Food-focused buyout firm Butterfly Equity is exploring options for its protein powder maker Orgain, according to people with knowledge of the matter.

The Los Angeles-based private equity firm is working with Goldman Sachs Group Inc. and Bank of America Corp. on a potential sale or an initial public offering, the people said, asking not to be identified because the information is private.

Orgain, which makes protein products including powder, drinks and snack bars, is worth about $2 billion, the people said. The company has about $400 million in annual revenue, one of the people said.

Butterfly could decide this year on which option to pursue, the people said. Deliberations are ongoing and may not lead to a deal, they added.

Representatives for Butterfly, Orgain, Goldman Sachs and Bank of America declined to comment.

The food industry’s shift toward healthier products and wellness, already underway before the coronavirus pandemic, has accelerated in the past year.

As part of its transition to a better-for-you portfolio, Nestle SA agreed in April to buy the nutritional supplement company Bountiful Co. for $5.75 billion. On Monday, it said it was acquiring hydration tablet maker Nuun & Co., without disclosing terms.

Irvine, California-based Orgain was founded in 2009 by physician and cancer survivor Andrew Abraham, according to its website.

Butterfly acquired a majority stake in Orgain in a 2019 deal in which the terms weren’t disclosed, according to a statement at the time. Ontario Teachers’ Pension Plan, a limited partner of Butterfly, joined in that transaction as a minority stakeholder.

©2021 Bloomberg L.P.

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