Butterfly, a Los Angeles-based private equity firm specializing in the food sector, today announced that it has exited the majority of its stake in MaryRuth Organics, a rapidly scaling vitamins, minerals, and supplements (“VMS”) brand. Butterfly will remain an active investor in the business and retain representation on the Board of Directors.
Since acquiring a stake in MaryRuth’s in August 2021, Butterfly has helped the Company nearly triple in size and quadruple its profitability. In partnership and collaboration with the Founder and CEO MaryRuth Ghiyam, Butterfly has built significant equity value by professionalizing the management team, bringing the marketing function in-house, developing and executing an aggressive retail expansion strategy, and fortifying sales, inventory, and operations planning.
Under the new capital structure, MaryRuth and her family will retain a significant majority ownership of the business, and the Company will continue to execute on its aggressive expansion plan both online and in retail stores. To support MaryRuth’s growth and as part of the transaction, King Street, a global alternative investment firm, will provide financing to the Company. Ed Testerman, Partner at King Street, will also join the Board.
“This exit marks a significant milestone for both Butterfly and MaryRuth’s and underscores the strong and collaborative relationship we have built over the past three years,” said Adam Waglay and Dustin Beck, Co-Founders and Co-CEOs of Butterfly. “We are thrilled to return a substantial amount of capital to our investors while continuing to support the fastest-growing, market-leading VMS brand.”
“We are immensely proud of the transformative growth and success MaryRuth Organics has achieved through our partnership,” said Francesco D’Arcangelo, Principal at Butterfly. “MaryRuth’s vision and dedication have been instrumental in building a brand that not only excels in the market but also stays true to its core values. MaryRuth Ghiyam and her team were great to work with. We look forward to supporting the Company’s continued success and are excited to maintain our strong partnership with King Street as we enter this new phase.”
“Butterfly has been an invaluable partner, sharing our passion for empowering customers to live healthier, happier lives through a comprehensive daily supplement regime,” said MaryRuth Ghiyam, Founder and CEO of MaryRuth Organics. “Adam, Dustin, and the entire Butterfly team have supported and enabled our decision to take back even more control of the Company as its founders. Through a deep understanding of our business and leadership team, King Street was able to structure a creative capital solution that best positions us to execute our go-forward business strategy, and we are eager to embark on this next stage of growth and continue our trajectory of success.”
“We are delighted to partner with MaryRuth Organics and Butterfly in this next chapter of growth,” said Testerman. “Our investment underscores our confidence in the Company’s strategic direction and its innovative approach, and we look forward to contributing to its ongoing success and expansion.”
Butterfly was advised by Kirkland & Ellis LLP on legal matters in connection with the transaction. MaryRuth’s was advised by Chief Legal Officer Jonathan Klein and Latham & Watkins LLP on legal matters. King Street was advised by Fried, Frank, Harris, Shriver & Jacobson LLP. Financial terms of the transaction were not disclosed.
