Nestlé has agreed to divest its mainstream vitamins, minerals and supplements (VMS) business, known internally as the Holistic Health portfolio, to Yellow Wood Partners in a transaction valued at $1.0 billion. The agreement transfers control of multiple consumer supplement brands and related operating assets to the private equity buyer.
The transaction remains conditional on receiving regulatory approvals and is anticipated to be finalized in the first half of 2027. Nestlé said the sale encompasses both branded products and an American private-label supplements business, alongside manufacturing, packaging, warehousing and distribution facilities located primarily in the United States.
The portfolio being sold includes seven named consumer brands: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu. Nestlé reported that the unit generated $1.2 billion in sales in 2025 and noted that its operations are concentrated in the US, with additional activity in Canada, China and other unspecified countries.
"This is another important step in the strategic transformation of our portfolio," said Philipp Navratil, CEO of 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."
As part of the transaction, Nestlé will retain its premium vitamins, minerals and supplements brands, including Solgar and Pure Encapsulations. The company framed the deal as a step in concentrating resources on areas where it sees the strongest competitive advantage, while transferring the mainstream VMS assets to an owner focused on that segment.
Key details:
- Purchase price: $1.0 billion paid to Nestlé by Yellow Wood Partners.
- Assets sold: Seven consumer brands, a US private-label supplements business, and related manufacturing, packaging, warehousing and distribution facilities.
- Financials: The divested business recorded $1.2 billion in sales in 2025.
- Geography: Primarily US operations, with presence in Canada, China and other countries.
- Timing and approvals: Deal requires regulatory approval and is expected to close in the first half of 2027.
Implications for markets and sectors:
- Consumer staples and health supplements: The sale reallocates mainstream VMS assets to private equity ownership while Nestlé concentrates on premium science-led brands.
- Manufacturing and logistics: Facilities transferred in the deal could affect regional supply chain and production footprints for the supplements sector in the US.
- Private equity activity: The acquisition represents continued investor interest in consumer health assets.
Risks and uncertainties:
- Regulatory approval: Completion is contingent on receiving necessary regulatory clearances.
- Timing: The planned closing window is the first half of 2027, which leaves an extended period before ownership transfers.
- Geographic exposure: The business operates mainly in the US with additional activity in Canada, China and other countries, creating potential cross-border considerations for the buyer.
Overall, Nestlé described the move as part of a broader portfolio transformation, retaining premium VMS brands while divesting the mainstream Holistic Health portfolio to a buyer positioned to operate that business independently.