Nestlé sells mainstream supplements business to Yellow Wood Partners for $1 billion

Author: Aninda Chakraborty Source: Just Food

Nestlé has secured a buyer for the “mainstream” vitamins, minerals, and supplements (VMS) brands it placed under review last year.

The Swiss food giant has agreed to sell the portfolio to US private-equity firm Yellow Wood Partners for SFr800 million ($1 billion).

The deal concludes the review process Nestlé initiated in 2025 for its “mainstream and value VMS brands.”

Portfolio Details

The portfolio being sold is referred to by Nestlé as the “Holistic Health portfolio” and includes seven brands:

• Nature’s Bounty
• Osteo Bi-Flex
• Ester-C
• Gard
• Puritan’s Pride
• Sisu
• Nuun (hydration brand)

Nestlé acquired Nuun in May 2021, describing the US business at the time as “a leader in the fast-growing functional hydration category.”

Ester-C, Nature’s Bounty, Osteo Bi-Flex, Puritan’s Pride, and Sisu were acquired as part of Nestlé’s $5.75 billion purchase of The Bountiful Company a month earlier.

Nestlé acquired the Gard brand a year earlier when it purchased IM Health Science.

Scope of the Transaction

The transaction also includes:

• The associated US private-label supplements business
• Dedicated manufacturing, packaging, warehousing, and distribution operations

The so-called “science-led” VMS assets under the brands Solgar and Pure Encapsulations are not part of the deal.

Financial and Geographic Overview

Nestlé stated that the assets covered by the agreement with Yellow Wood generated $1.2 billion in sales in 2025, with the majority of sales in the US, as well as Canada and China.

Executive Commentary

Philipp Navratil, CEO of Nestlé, said:

“This is another important step in the strategic transformation of our portfolio. 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.”

Dana Schmaltz, Partner at Yellow Wood Partners, 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. 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. 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.”

Regulatory and Timeline Details

The transaction is subject to regulatory approvals and is expected to close by the first half of 2027.

Yellow Wood’s Acquisition History

In a separate statement, Yellow Wood noted that this deal represents its sixth “significant carveout acquisition” from a global consumer company, including transactions with:

• Bayer
• Reckitt Benckiser
• Unilever
• Haleon

Related Developments

Nestlé has also initiated a “strategic review” of New Zealand supplement company The Better Health Company and its Go Healthy brand.

A company spokesperson told Just Food in August that the process will examine a full range of options to “best position the business for future success.”

This article was originally created and published by Just Food, a GlobalData owned brand.