Nestlé to sell vitamins business to Yellow Wood Partners for US$1b
Nestlé has agreed to sell its mainstream Vitamins, Minerals and Supplements (VMS) business, the Holistic Health portfolio, to private equity firm Yellow Wood Partners for US$1 billion, the company announced on Tuesday. The transaction, which is subject to regulatory approvals, is expected to close by the first half of 2027.
The deal includes seven brands: Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu, as well as Nestlé's US private-label supplements business and related manufacturing, packaging, warehousing and distribution operations. The business generated US$1.2 billion in sales in 2025 and operates predominantly in the US, with a presence in several other markets including Canada and China.
Strategic shift
Nestlé chief executive Philipp Navratil said the divestment is part of a broader strategic transformation. "This is another important step in the strategic transformation of our portfolio. We are focusing our resources where we have the strongest competitive advantage," he said per Malay Mail. In an interview in Zurich, Navratil added that the divestment "frees up a lot of time" for teams to focus on priority areas.
Nestlé said it continues to be well positioned for growth in the premium, science-led VMS space, where brands such as Solgar and Pure Encapsulations are performing strongly. "At the same time, the category has evolved, and the mainstream VMS business requires a different approach under dedicated ownership," Navratil said.
The sale is the latest step by Navratil to sharpen Nestlé around its most promising pillars like coffee, petcare and food and snacks. The company sold half of its water business earlier this year and is also offloading its ice cream interests. The review of the vitamin brands and water business was initiated by Navratil's predecessor.
The proceeds from the sale will be used to reduce leverage, which could also put Nestlé in a position for acquisitions. "When the leverage is in the right range, it will obviously open up optionality," Navratil said. "And obviously we will always be open to look at exciting opportunities that are inorganic as well."
Market context
The transaction marks Yellow Wood Partners' sixth acquisition from major consumer companies since 2019. The Boston-based private equity firm previously acquired ChapStick from Haleon in 2024 and Elida Beauty from Unilever in 2023.
Demand for supplements and vitamins has grown as more consumers have wrapped them into their health and wellness routines. Last month, Procter & Gamble said it will acquire supplement maker Thorne in a deal valued at $3.8 billion. Earlier this year, Unilever said it was acquiring multivitamin company Grüns.