Nestlé sells mainstream vitamin packaging operations, 7 brands to Yellow Wood for US$1B

SWITZERLAND – Nestlé has agreed to divest its mainstream Vitamins, Minerals and Supplements business to private equity firm Yellow Wood Partners for US$1 billion, including packaging operations for seven established brands such as Nature’s Bounty, Osteo Bi-Flex, and Puritan’s Pride. 

The transaction, announced on 2 September 2026, comprises the ‘Holistic Health’ portfolio, which generated US$1.2 billion in sales in 2025 and predominantly operates in the US with a presence in Canada and China.  

The scope covers dedicated manufacturing, packaging, warehousing, and distribution operations alongside the brand portfolio.  

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

Yellow Wood Partners Acquires Sixth Major Consumer Brand Portfolio

The Boston-based private equity firm, which previously acquired ChapStick from Haleon in 2024 and Elida Beauty from Unilever in 2023, plans to run the acquired supplement portfolio as an independent platform operating across global retail networks.  

Nestlé CEO Philipp Navratil stated that the divestment represents another step in the strategic transformation of the company’s portfolio, focusing resources where it has the strongest competitive advantage in the premium, science-led VMS space with brands such as Solgar and Pure Encapsulations.  

He noted that the category has evolved and the mainstream VMS business requires a different approach under dedicated ownership. 

Nestlé’s Portfolio Optimisation Strategy Continues

The divestment follows Nestlé’s earlier sale of half of its water business and aligns with the company’s strategy of shedding slower-growth divisions to protect margins against inflation while concentrating on core categories including coffee, pet care, and food and snacks.

Nestlé stated that the proceeds from the sale will be used to reduce leverage, potentially positioning the company for future acquisitions.  

The company continues to be well positioned for growth in the premium vitamins and supplements sector through retained brands such as Solgar and Pure Encapsulations.  

The transaction marks the latest step in CEO Philipp Navratil’s efforts to streamline and turn around the Swiss foodmaker.  

Nestlé’s shares have recovered some losses in the past year, though they remain far from their 2022 highs.

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