Nestle Health Science to acquire majority stake in Orgain
February 04, 2022 at 08:07 am EST
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Vevey, Switzerland: Nestle 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 Nestle 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 Nestle 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.
'Nestle 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 Nestle 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 Nestle's organic growth, while slightly dilutive to the Group's underlying trading profit margin in 2022. The agreement includes the option for Nestle Health Science to fully acquire Orgain in 2024.
Nestlé S.A. is the world's leading agri-food group. Net sales break down by category of products as follows:
- powdered and liquid beverages (26.7%): soluble coffees (Nescafé and Starbucks brands), coffee in capsules (Nespresso), chocolate drinks (Nesquik, Milo, etc.), tea drinks (Nestea), etc.;
- pet food (20.3%): brands such as Purina, Friskies, Felix, etc.;
- pharmaceutical, nutrition and well-being products (16.4%): nutritional supplements (Resource, Boost, Nutren, Optifast, Peptamen brands, etc.), infant and maternal nutrition products (NAN, illuma, Cerelac, Nido, Gerber), ketogenic beverages (BrainXpert), (Nesquick, Fitness, Cheerios, Lion, etc.), etc.;
- ready meals and seasoning products (12.5%): frozen and chilled dishes (Lean Cuisine, Hot Pockets and Stouffer's brands), soups (Maggi), etc.;
- dairy products and ice cream (11.8%): powdered milk, sweetened condensed milk, yoghurt and cream desserts, ice cream (Nido, Nesvita, Carnation, La Laitière, Coffee Mate, Nestlé Ice Cream, Dreyers, Häagen-Dazs, Extrême brands, etc.);
- chocolates, sweets and biscuits (8.7%): Kit Kat, Smarties, Cailler, Terrafertil, etc. brands;
- bottled waters (3.6%): Nestlé Pure Life, Vittel, Perrier, S. Pellegrino, etc. brands.
Net sales are distributed geographically as follows: Switzerland (1.2%), France (3.8%), the United Kingdom (3.8%), Germany (2.4%), Europe (12.8%), the United States and Canada (35%), China (5.9%), Asia and Oceania (21.4%) and Latin America (13.7%).