Nestlé Health Science has agreed to acquire a majority stake in plant-based protein powder maker, Orgain.
Founder Dr Andrew Abraham and Butterfly Equity will continue to hold minority shares in the company, and Dr Abraham will continue to serve as its chief executive.
Orgain complements Nestlé Health Science's existing portfolio of nutrition products that support healthier lives, the food giant noted.
"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."
The deal is subject to customary regulatory approvals.
The company, founded in 2009, offers protein-based shakes, powders and snacks developed by Dr Andrew Abraham, an integrative medicine specialist and cancer survivor.
Dr Abraham commented, “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."
The agreement includes the option for Nestlé Health Science to fully acquire Orgain in 2024.
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 company added.
In May of last year, Nestlé Health Science acquired functional hydration group Nuun for an undisclosed sum.