Nestlé has announced it will divest its vitamins, minerals and supplements (VMS) brands to the private equity firm Yellow Wood Partners for $1bn.
The deal covers seven established brands: Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu, alongside the associated US private-label supplements business and dedicated manufacturing, packaging, warehousing and distribution operations.
According to Nestlé, the business generated $1.2bn in sales last year, operating predominantly in the US with a presence in Canada, China and other markets.
Nature's Bounty is the platform's flagship brand, ranking as the second-largest overall VMS brand and the leading women's health brand in the US.
The brand is used in more than 20% of US households and has built during 50 years of market presence.
Nestlé originally acquired the majority of these brands as part of its $5.75bn purchase from The Bountiful Company in 2021.
Dana Schmaltz, Partner at Yellow Wood, described the acquisition as bringing together category leaders across high-growth VMS segments including hydration, gut health and immunity.
Operating Holistic Health as a standalone entity will provide the opportunity to leverage the power of each brand to accelerate growth, enhance innovation and strengthen their market positions with consumers and retail partners.
"We have developed an excellent relationship with the team at Nestlé and look forward to ensuring a smooth transition over the coming months as we close the transaction."
For Nestlé, the divestment continues a broader portfolio transformation under CEO Philipp Navratil, who took the role a year ago.
The company will retain premium, science-led brands Solgar and Pure Encapsulations, which it says remain core to its VMS strategy going forward.
"This is another important step in the strategic transformation of our portfolio," said Navratil.
"We are focusing our resources where we have the strongest competitive advantage."
With Nestlé’s strong innovation and brand-building capabilities, we are well positioned for growth in the premium, science-led VMS space, where brands such as Solgar and Pure Encapsulations continue to perform strongly.
"At the same time, the category has evolved and the mainstream VMS business requires a different approach under dedicated ownership."
Nestlé's move mirrors similar portfolio-slimming exercises at rivals Unilever and Reckitt.
The transaction marks Yellow Wood's sixth major carveout from a global consumer company, following previous deals with Bayer, Reckitt, Unilever and Haleon.
It is subject to regulatory approval and is expected to close in the first half of 2027.
The acquisition adds to a wave of consolidation in the supplements space, following Procter & Gamble's recent $3.8bn agreement to acquire Thorne — underscoring continued interest from major consumer goods players in health and wellness as a growth category.
