Nestle buys into DCP-backed plant-based protein provider
Orgain, a US plant-based nutrition business backed by China’s DCP Capital Partners, has agreed to sell a majority stake to Nestle. The size of the transaction was not disclosed.
DCP participated in the purchase of a controlling interest in Orgain in 2019, alongside Butterfly Equity, a food-focused investor headquartered in Los Angeles, and Ontario Teachers’ Pension Plan (OTPP). DCP, Butterfly, and Andrew Abraham, founder and CEO of Orgain, will retain minority stakes in the company under Nestle’s ownership. Abraham will continue to lead the business.
DCP was included in the original deal to facilitate expansion in China. Orgain subsequently recruited a country-level leadership team and established a local distribution network. Its products are now available through online channels such as Tmall and JD.com as well as at leading brick-and-mortar outlets.
Abraham, an integrative medicine specialist and cancer survivor, founded Orgain in 2009 to promote nutrition access. The company’s portfolio includes plant-based and organic protein powder, protein shakes, nutritional shake, and a variety of snack products.
The acquisition is being made by Nestlé Health Science, which was formerly Nestle’s healthcare nutrition business. The company said in a statement that nutritional protein “plays a key role in supporting our health and wellness, whether we enjoy an active lifestyle or are facing health challenges."
Hwan Chung, a managing director at DCP, said in a separate statement: “Orgain’s extraordinary growth is a testament to Andrew’s incredible vision and industry leadership. It has been a privilege to work with the Orgain team to drive the company’s entry into the China market.”
Global plant-based protein providers such as Impossible and Beyond have pushed into China as part of Asia rollouts, while numerous local operators have received PE funding, most recently Starfield. Related China incursions by international players include Oatly, a Swedish oat-based, dairy-free beverage brand backed by a joint venture between China Resources Group and Verlinvest.
Kirkland & Ellis and Giannuzzi Lewendon acted as legal advisors to Orgain, while BofA Securities, Goldman Sachs, and Mally Collecive served as financial advisors.
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