Nestle and the private equity firm Yellow Wood Partners have reached an agreement for a $1 billion acquisition deal. The Nestle and Yellow Wood Partners deal will transfer Nestlé’s mainstream vitamins, minerals and supplements (VMS) business to Yellow Wood.
It also covers Nestlé’s Holistic Health platform, 7 established supplement brands and its U.S. private-label supplements business. The deal is expected to close in the first half of 2027.
Nestle Supplement Business Sale Includes Seven Brands
In the Nestle and Yellow Wood Partners deal, the food company offers a portfolio of established brands serving different areas of consumer health and wellness.
The brands changing ownership are:
- Nature’s Bounty
- Osteo Bi-Flex
- Ester-C
- Gard
- Nuun
- Puritan’s Pride
- Sisu
The Yellow Wood Nestle purchase also includes Nestlé’s U.S. private-label supplements business. Nature’s Bounty is a particularly significant asset. Yellow Wood describes it as the No. 2 overall VMS brand in the United States and a leading women’s health brand. Its products are consumed in more than 20% of U.S. households, according to Yellow Wood.
Reason behind Nestle Vitamin Brands Sale
The Nestle vitamin brands sale reflects Nestlé’s broader strategy to streamline its portfolio and concentrate investment on businesses where it believes it has a stronger competitive position.
Nestlé CEO Philipp Navratil said the company is focusing resources where it has the strongest competitive advantage. He added that the mainstream vitamins, minerals and supplements business “requires a different approach under dedicated ownership.”
However, the Nestle vitamins, minerals and supplements business is not disappearing from the company’s portfolio entirely. Nestlé will retain Solgar, a premium VMS brand, along with other health-focused brands including Garden of Life. Nestle said it sees opportunities for growth in the premium, science-led VMS segment.
Nestlé’s Earlier $5.75 Billion Supplement Acquisition
The Nestle and Yellow Wood Partners deal also changes the ownership of brands Nestlé acquired only several years ago. In 2021, Nestlé purchased several businesses from The Bountiful Company in a deal valued at $5.75 billion. That transaction brought brands including Nature’s Bounty, Solgar, Osteo Bi-Flex and Puritan’s Pride into Nestlé’s portfolio.
Yellow Wood’s Plans for Nestlé’s Holistic Health Platform
For Yellow Wood Partners, Nestlé’s Holistic Health platform represents an expansion into the consumer wellness and supplements market.
The private equity firm Yellow Wood plans to operate Nestle’s business as a standalone entity. Its stated strategy includes accelerating brand growth, increasing innovation and strengthening relationships with consumers and retailers.
Yellow Wood Partner Dana Schmaltz said the portfolio contains category leaders in high-growth VMS areas such as hydration, gut health and immunity. The company also sees increasing consumer adoption of VMS products and rising demand for benefit-specific health solutions as opportunities for organic growth.
Next Step In the Nestle and Yellow Wood Partners Deal
The Nestle and Yellow Wood Partners deal is expected to close during the first half of 2027, provided it receives the required regulatory approvals. Until closing, Nestlé remains the owner of the affected brands and businesses.
Nestlé’s Holistic Health platform will become Yellow Wood’s sixth significant carve-out acquisition from major global consumer companies since 2019.
Overall, the Nestle and Yellow Wood Partners deal gives Yellow Wood control of a sizable mainstream VMS portfolio while allowing Nestlé to sharpen its focus on premium, science-led health and wellness brands.
