Nestlé to Divest its Mainstream VMS/Supplements Business

Nestlé has entered into an agreement to divest its mainstream vitamins, minerals, and supplements (VMS) business to Yellow Wood Partners, a private equity firm focused exclusively on consumer brands, for $1 billion.

The transaction is expected to close by the first half of 2027, pending applicable regulatory approvals.

“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 transaction includes seven brands: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride, and Sisu, along with the associated private label supplements business, dedicated manufacturing, packaging, warehousing, and distribution operations.

In 2025, the business generated sales of $1.2 billion, operating predominantly in the U.S., along with operations in Canada and China.

Nestlé began publicly and definitively signaling that it intended to sell its mainstream/value VMS businesses earlier this year after prior strategic reviews, stating that it was “moving ahead with the process to engage with potential buyers” in February.

“Holistic Health is an excellent platform of trusted brands with deep retailer relationships providing significant opportunities for continued growth,” said Dana Schmaltz, partner at Yellow Wood. “The Holistic Health portfolio provides a group of specialty 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.”

“This exciting portfolio is deeply aligned with our focus, expertise and functional operations approach, and we are thrilled to add each of these brands to the Yellow Wood umbrella,” said Tad Yanagi, partner at Yellow Wood. “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. As VMS adoption continues to increase among a wide range of consumers and demand for benefit-specific solutions expands, we see significant runway to drive organic growth across the platform.”

Yellow Hood has made significant acquisitions of businesses from other companies in the consumer goods space, including Bayer, Reckitt, Unilever, and Haleon.