Nestlé to sell vitamins, minerals and supplements business to Yellow Wood Partners for $1bn

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Nestlé has agreed to divest its mainstream vitamins, minerals and supplements (VMS) business to private equity firm Yellow Wood Partners for $1 billion, expected to close by the first half of 2027.

The transaction includes seven brands under Nestlé’s ‘Holistic Health’ portfolio: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu. It also includes Nestlé’s US private-label supplements business and its manufacturing, packaging, warehousing and distribution operations.

The VMS business generated sales of $1.2 billion in 2025, predominantly operating in the US with an international presence in other markets such as Canada and China.

Last year, Nestlé launched a strategic review of the segment as part of broader efforts to streamline its portfolio, optimise its operations and consider divesting underperforming brands.

Amid these ongoing efforts, the company confirmed last month that it was reviewing options for its The Better Health Company supplements business, based in New Zealand and acquired by Nestlé Health Science in 2022.

Philipp Navratil, CEO of Nestlé, said the Holistic Health business sale marks “another important step in the transformation of our portfolio”.

“We are focusing our resources where we have the strongest competitive advantage,” he commented. “With Nestlé’s strong innovation and brand-building capabilities, we are well positioned for growth in the premium, science-led VMS space, where brands such as Solgar and Pure Encapsulations continue to perform strongly.”

Navratil said despite this, the category has evolved and the mainstream VMS business “requires a different approach under dedicated ownership”.

The sale to Wood Partners marks the Boston, US-based PE firm’s sixth significant carve-out acquisition from five major global consumer companies, including Bayer, Reckitt, Unilever and Haleon.

Dana Schmaltz, partner at Yellow Wood, said: “The Holistic Health portfolio provides a group of speciality category leaders in various high-growth sectors of the attractive VMS market, including hydration, gut health and immunity.”

Schmaltz said that operating the business as a standalone entity will “provide the opportunity to leverage the power of each brand to accelerate growth, enhance innovation and strengthen their market positions with consumers and retail partners”.

“We have developed an excellent relationship with the team at Nestlé and look forward to ensuring a smooth transition over the coming months as we close the transaction.”

In July, Nestlé agreed to sell a 50% stake in its water and premium beverages business to private equity firm Platinum Equity, creating a new joint venture, Peranel.

These portfolio streamlining measures come as a growing number of major multinational F&B businesses, such as Unilever and General Mills, have undergone restructuring plans and divestitures of non-core business assets in recent years. As the industry faces economic uncertainty and changing consumer preferences, further sector consolidation and turnaround initiatives are likely to continue as companies review where they can cut costs and shed underperforming brands.