Nestlé Health Science to buy majority stake in Orgain
"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 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 Abraham, an integrative medicine specialist and cancer survivor. He developed protein-based shakes, powders and snacks, with Orgain growing to become the leading plant-based protein powder and organic nutritional protein ready-to-drink shake in the US.
"Nestlé Health Science and Orgain share the same philosophy: better nutrition can change lives," Abraham said.
"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."
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.
