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Mary Ruth Organics likely to be acquired by a strategic

Illustration of a prescription bottle holding a glowing sun

Illustration: Natalie Peeples/Axios

Butterfly Equity-backed supplements brand MaryRuth Organics is likely to sell to a strategic for around 4x revenue or up to $1 billion, sources familiar with the situation tell Axios.

Why it matters: While CPG conglomerates are more selective about what they acquire, they are paying multiples of revenue for the targets they do find attractive.

Catch up fast: Los Angeles-based MaryRuth Organics was reported to be for sale last month by Reuters.

  • The company retained Houlihan Lokey and Mally Collective as financial advisers.
  • Known for its liquid vitamins, MaryRuth Organics also makes marine-sourced gummies and chewable health products.

Meanwhile, Tillamook Country Smoker, which Axios previously reported as exploring strategic alternatives, is also likely to be acquired by a strategic, sources say.

  • Tillamook has about $150 million in revenue and is profitable.

By the numbers: Last year MaryRuth Organics had about $200 million in revenue and year-over-year growth of 80%, a source familiar with the situation said.

  • This year the brand expects to generate $250 million in revenue, which equates to year-over-year growth of 25%.
  • It also has a gross margin of 60%, the source said, and a projected EBITDA of $50 million, per Reuters.

State of play: The supplements space is very active right now in terms of potential M&A and investment activity.

Our thought bubble: With an increasing number of rivals actively raising money and attractive valuation multiples, plus the fact that its own growth is slowing, MaryRuth Organics picked an opportune time to exit.

MaryRuth Organics and Butterfly Equity did not immediately respond to a request for comment. Houlihan Lokey declined to comment.

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