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California private equity firm buys a majority stake; expansion into new categories being considered.

Monroe, N.H.-based Pete and Gerry’s Organics (peteandgerrys.com), the nation’s leading producer of organic, free-range and pasture-raised eggs, has sold a majority stake of its business to Butterfly Equity LP, Los Angeles. Terms were not disclosed.

RAPID GROWTH

Pete and Gerry’s brands are Pete and Gerry’s Organic, Nellie’s Free Range and Consider Pastures. Its sales will reportedly be in the range of $260 million, up from $197 million in 2018. A local newspaper said the company has a corporate jet. The company reportedly plans to expand into other categories. A breakfast sandwich under consideration.

Butterfly is a private equity firm with a “seed to fork” approach to investing in food across agriculture, aquaculture, food and beverage products, food distribution and foodservice. It will enable Pete and Gerry’s to expand.

Jesse Laflamme, who had been Pete and Gerry’s CEO, will retain an ownership position and continue as an advisor. Erik Drake, who joined Pete and Gerry’s as COO in 2016, will become CEO.  British Columbia Investment Management Corporation, Victoria, British Columbia, Canada, will become a new minority investor in Pete and Gerry’s alongside Butterfly and Laflamme.

According to Butterfly co-founder Adam Waglay, “We believe the company’s future is incredibly bright as the market leader in the premium egg category.”

Pete and Gerry’s has a second processing facility in Greencastle, Penn. It traces its roots back to a small family farm in the late 1800s. Laflamme took over the business from his parents in 2000.

Today, it partners with more than 130 small family farms nationwide. Its Pete and Gerry’s Organic and Nellie’s Free Range brands are the No. 1 egg brands in their respective segments. The company became the first Certified Humane egg producer in 2003 and the first egg producer in the world to achieve Certified B-Corporation status in 2013.

THE IDEAL PARTNER

Laflamme said the company is poised to accelerate growth, and Butterfly is the ideal partner. Butterfly co-founder Dustin Beck said Pete and Gerry’s is a forward-thinking, mission-driven company and that “Butterfly is absolutely aligned with their mission and looks forward to supporting the team to continue these efforts.”

Butterfly was advised by Kirkland & Ellis LLP on legal matters in connection with the transaction. Pete and Gerry’s was advised by Lazard Middle Market and Goodwin Procter LLP.