Nestlé agrees $1bn sale of mainstream vitamins business to Yellow Wood Partners

Nestlé has agreed to sell its mainstream Vitamins, Minerals and Supplements (VMS) business to private equity firm Yellow Wood Partners for one billion USD, as the food and consumer goods giant continues to reshape its portfolio.

The deal, which is subject to regulatory approval, is expected to close by the first half of 2027 and includes seven established brands: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu.

The transaction also includes the US private-label supplements business and dedicated manufacturing, packaging, warehousing and distribution operations.

The Holistic Health portfolio generated USD 1.2 billion in sales in 2025 and predominantly operates in the US, with a presence in other markets including Canada and China.

This is another important step in the strategic transformation of our portfolio. We are focusing our resources where we have the strongest competitive advantage.”

Philipp Navratil, CEO of Nestlé

Nestlé focuses on premium VMS

The sale is part of Nestlé’s wider strategy to focus its investment on areas where it has the greatest competitive advantage.

“This is another important step in the strategic transformation of our portfolio” said Philipp Navratil, CEO, Nestlé. “We are focusing our resources where we have the strongest competitive advantage.

“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. At the same time, the category has evolved, and the mainstream VMS business requires a different approach under dedicated ownership.”

The company will be keeping hold of two of its premium, science-led VMS brands Solgar and Pure Encapsulations, as they continue to perform strongly.

Yellow Wood targets standalone growth

The acquisition will give the brands greater scope to accelerate growth, innovation and strengthen their positions with consumers and retailers.

Nature’s Bounty is the number two overall VMS brand and leading women’s health brand in the US, according to Yellow Wood. Its products are consumed in more than 20 percent of US households and the brand has been established for more than 50 years.

Dana Schmaltz, Partner at Yellow Wood, said the portfolio offered significant growth opportunities, particularly across hydration, gut health and immunity. She described Holistic Health as “an excellent platform of trusted brands” with strong retailer relationships.

“Operating Holistic Health 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,” she added.

Tad Yanagi, Partner at Yellow Wood, backed up these statements, saying the portfolio was closely aligned with the firm’s investment strategy, pointing to rising VMS adoption and growing demand for benefit-specific products as opportunities for further growth.

“We believe that by implementing the Yellow Wood Consumer Operating DNA model, we can accelerate the growth of all of these brands as we have done with other category defining carveouts such as Q-tips, Chapstick, Suave and Dr. Scholl’s,” he said.

The transaction is Yellow Wood’s sixth significant carveout acquisition from five major global consumer companies, including Bayer, Reckitt, Unilever and Haleon.

Perella Weinberg Partners and Canaccord Genuity served as financial advisers to Yellow Wood, with Goodwin Procter providing legal counsel.