Yellow Wood Partners acquires seven brands—including Nature’s Bounty and Nuun—as Nestlé pivots to high-margin, science-led nutrition.
Swiss food and nutrition conglomerate Nestlé has entered into an agreement to sell its mainstream vitamins, minerals, and supplements (VMS) portfolio to Boston-based private equity firm Yellow Wood Partners for $1.0 billion. The transaction encompasses seven well-known consumer supplement brands—Nature’s Bounty, Osteo Bi-Flex, Ester-C, Puritan’s Pride, Nuun, Sundown (Gard), and Sisu—along with Nestlé’s U.S. private-label manufacturing, packaging, warehousing, and distribution operations.
The divested “Holistic Health” division generated approximately $1.2 billion in net sales during 2025, operating predominantly across the United States with established distribution footprints in Canada and China. While the mainstream supplement sector expanded rapidly in recent years, heightened retail competition, promotional discounting, and margin compression prompted Nestlé leadership to conclude that mass-market VMS lines require a dedicated operating model under private equity ownership.
The divestiture marks another milestone in the aggressive portfolio reshaping led by Nestlé CEO Philipp Navratil, who is streamlining operations to focus resources on core categories with distinct competitive advantages. The sale follows previous high-profile portfolio carve-outs, including divesting half of its premium waters division to Platinum Equity in a $3.4 billion joint venture, exiting Blue Bottle Coffee, and offloading remaining ice cream assets to Froneri.
Despite exiting mainstream retail supplements, Nestlé is retaining its high-growth, premium science-backed health and medical nutrition assets. The company will continue to invest behind clinically formulated, practitioner-channel brands such as Solgar and Pure Encapsulations within its Nestlé Health Science division, which deliver higher operating margins and align closely with specialized medical, metabolic, and clinical nutrition applications.
The transaction is subject to standard regulatory approvals and customary closing conditions, with final completion expected in the first half of 2027. Proceeds from the sale will be utilized to reduce corporate debt leverage, strengthen the group’s balance sheet, and provide strategic capital flexibility for future targeted acquisitions across high-performing growth pillars, including pet care, coffee, and functional nutrition.
Source: Food Dive
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