Nestlé Announces Major Health Business Sale
Nestlé has agreed to sell its mainstream vitamins, minerals and supplements business to US-based private equity firm Yellow Wood Partners for $1 billion. The transaction is part of a broader strategy by the Swiss food giant to streamline its portfolio and focus its resources on businesses where it believes it has stronger competitive advantages.
The deal is expected to be completed in the first half of 2027, subject to regulatory approvals.
Seven Major Brands Included
The transaction covers Nestlé’s Holistic Health platform and includes seven well-known supplement brands: **Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu.
The deal also includes Nestlé’s US private-label supplements business along with related manufacturing, packaging, warehousing and distribution operations.
The business generated approximately $1.2 billion in sales during 2025, with its operations concentrated mainly in the United States and additional presence in markets including Canada and China.
Nestlé Will Keep Its Premium Brands
The sale does not mean Nestlé is abandoning the vitamins and supplements market altogether. The company will retain its premium, science-focused supplement brands, including Solgar and Pure Encapsulations.
Nestlé says the mainstream and premium segments now require different business approaches. While it sees continued growth potential in premium, science-led products, it believes the mainstream segment would be better managed under dedicated ownership.
Why Nestlé Is Selling
The divestment is part of a wider transformation under CEO Philipp Navratil, who has been working to simplify Nestlé’s portfolio and concentrate investment on areas where the company has a stronger competitive position.
The company has already been reviewing or reducing exposure to several businesses outside its core priorities. The latest sale gives Nestlé an opportunity to redirect resources while allowing Yellow Wood Partners to operate the acquired brands as a standalone business.
Yellow Wood Sees Growth Opportunity
For Yellow Wood Partners, the acquisition provides a substantial portfolio of established consumer health brands with significant retail presence. The private equity firm has increasingly focused on acquiring established consumer businesses from major multinational companies.
The company is expected to pursue growth opportunities across areas such as wellness, immunity, hydration and other health-focused categories.
What Happens Next
The transaction still requires regulatory clearance before it can close. If approvals proceed as planned, ownership of the mainstream supplement portfolio will transfer to Yellow Wood during the first half of 2027.
For Nestlé, the deal represents another step toward a more focused business portfolio, while for Yellow Wood, it creates a major new platform in the growing consumer health and wellness market.
Summary
Nestlé has agreed to sell its mainstream vitamins, minerals and supplements business to Yellow Wood Partners for $1 billion. The deal includes seven brands and a US private-label business that generated $1.2 billion in 2025 sales. Nestlé will retain premium brands such as Solgar and Pure Encapsulations as it focuses on higher-value health products and its core businesses.
