Nestlé sells US$1B vitamins, minerals and supplements business to Yellow Wood Partners

USA – Nestlé has agreed to divest its mainstream vitamins, minerals and supplements (VMS) business to private equity firm Yellow Wood Partners for US$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 US$1.2 billion in 2025, predominantly operating in the USA 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 their 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.”

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

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.

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.”

The company reported sales of US$27.05 billion (CHF 21.3 billion), a 5.7% year-on-year decrease in Q1 FY 2026, led by the infant formula recall.

Organic growth (OG) was 3.5%, which included an impact of approximately -90 bps from the infant formula recall.

In Nutrition, organic growth was -3.9%, with negative RIG, driven by infant nutrition. Food & Snacks OG was 4.2%, with RIG of 2.1%, supported by improving performance in confectionery.

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