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Nestlé has entered into a definitive agreement to sell its mainstream vitamins, minerals, and supplements (VMS) business to US private equity firm Yellow Wood Partners in a transaction valued at $1 billion.

Expected to close in the first half of 2027, subject to customary regulatory approvals, the divestment encompasses seven brands managed under Nestlé's Holistic Health portfolio, alongside the group's US private-label dietary supplements operations and associated manufacturing, packaging, warehousing, and logistics assets.

The transaction marks a significant step in Nestlé's ongoing corporate portfolio transformation, enabling the enterprise to reallocate resources toward core growth categories and high-margin, science-led nutrition platforms.

Divested Brand Portfolio and Operational Scope

The divested VMS business generated approximately $1.2 billion in net sales during the 2025 financial year, operating primarily in the United States alongside commercial positions in international markets including Canada and China.

The seven core consumer brands transferring to Yellow Wood Partners comprise:

💊 Nature's Bounty: A flagship mainstream dietary supplement brand spanning broad-spectrum wellness, vitamins, and minerals.

🦴 Osteo Bi-Flex: A specialised joint health and mobility supplement platform.

🍊 Ester-C: A patented, non-acidic vitamin C formulation engineered for immune support.

💧 Nuun: A functional hydration brand formulating low-sugar, electrolyte-rich effervescent tablets and drink mixes.

🌿 Puritan's Pride: An established direct-to-consumer and retail vitamins and nutritional wellness brand.

🍁 Sisu: A Canadian premium natural health and dietary supplement brand.

🛡️ Gard: Formulated active supplement solutions targeting targeted nutritional requirements.

Alongside the branded lines, the agreement transfers Nestlé's contract private-label supplements manufacturing division, securing end-to-end supply chain infrastructure for Yellow Wood Partners.

Philipp Navratil, Chief Executive Officer of Nestlé, stated that the transaction represents an important milestone in the ongoing transformation of the company's operating portfolio. Navratil noted that while the mainstream VMS segment has evolved and requires dedicated ownership to reach its potential, Nestlé remains focused on deploying resources where it maintains the strongest competitive advantages, particularly within premium, science-backed nutrition brands such as Solgar and Pure Encapsulations.

For Boston-based Yellow Wood Partners, the $1 billion transaction marks the private equity firm's sixth major corporate carve-out executed across multinational consumer goods enterprises, following acquisitions from Bayer, Reckitt, Unilever, and Haleon.

Global Portfolio Reshaping

The agreement follows a series of large-scale corporate realignments executed by Nestlé in recent months. The group previously agreed to sell a 50 per cent equity stake in its global waters and premium beverages business to Platinum Equity, establishing a standalone joint venture under the name Peranel.

By shedding capital-intensive mainstream consumer supplement operations, Nestlé continues to streamline its corporate architecture, concentrating investments on premium consumer healthcare, medical nutrition, coffee, and pet care divisions globally.