Nestlé sells US$1bn Supplements Arm to Yellow Wood Partners
NestlĂ© has confirmed plans to offload its vitamins and supplements division â referred to as the Holistic Health platform â to private equity firm Yellow Wood Partners in a US$1bn transaction.
The move is part of CEO Philipp Navratil's ongoing turnaround strategy to streamline and refocus Nestlé's strategic direction, a process that originated under his predecessor, Laurent Freixe.
Among the brands included in the deal are Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu, along with Nestlé's US private-label supplements business and its associated manufacturing and logistics operations.
Many of these brands were brought into the Nestlé portfolio through a previous US$5.75bn acquisition of The Bountiful Company in 2021. The combined brands are reported to have generated revenues exceeding US$1bn in 2025.
The divestment is the latest in a series of moves by Philipp to sharpen Nestlé's focus on its core product pillars; coffee, petcare, food and snacks. The company has already sold half of its water operations this year and is in the process of exiting its ice cream interests.
Vitamins and wellness: a fast-growing market
Philipp says the sale will allow NestlĂ©'s teams to direct their attention to priority areas, while the proceeds are earmarked to reduce the company's leverage â a step that could ultimately open the door to future acquisitions.
Discussing this strategy, Philipp says: "With NestlĂ©âs strong innovation and brand-building capabilities, we are well positioned for growth."
Nestlé's shares have recovered some ground over the past year but remain well below their 2022 peak.
Consumer interest in vitamins and supplements continues to rise, with market data pointing to growing adoption of such products as part of everyday wellness routines. Major consumer goods companies have taken notice.
- Nestlé is selling its Holistic Health vitamins and supplements platform to Yellow Wood Partners for US$1bn
- The brands being sold were originally acquired as part of Nestlé's US$5.75bn purchase of The Bountiful Company in 2021
- The Holistic Health portfolio generated revenues of more than US$1bn in 2025
- Procter & Gamble has announced plans to acquire supplement maker Thorne in a deal valued at US$3.8bn, while Unilever is acquiring multivitamin brand GrĂŒns for an estimated US$1.2bn
- The Yellow Wood Partners transaction is expected to close in the first half of 2027, marking the firm's sixth acquisition from a major consumer goods company in seven years
With Nestlé’s strong innovation and brand-building capabilities, we are well positioned for growth.
Last month, Procter & Gamble announced plans to acquire supplement maker Thorne to capitalise on these trends. The deal is currently valued at US$3.8bn.
Unilever, meanwhile, has also signalled plans to strengthen its wellness portfolio through the acquisition of multivitamin company GrĂŒns in a deal estimated at US$1.2bn.
Even as it exits the mainstream segment, Nestlé says it remains well positioned to compete in the more premium vitamins and supplements category.
Philipp says that Nestlé is focusing its resources where it has the strongest competitive advantage, adding that the vitamins and supplements category has evolved and requires "a different approach" in how it operates.
Inside Yellow Wood Partners' latest deal
The transaction is expected to complete in the first half of 2027 and will represent Yellow Wood Partners' sixth acquisition from a major consumer goods company in the space of seven years.
Previous deals by the private equity firm include the purchase of lip balm brand ChapStick from Haleon and Elida Beauty, Unilever's non-core beauty and personal care division.
According to Dana Schmaltz, a partner at Yellow Wood Partners, running the acquired brands as a standalone entity will unlock faster growth and drive enhanced innovation.
Dana says that Nestlé operating Holistic Health as one entity will provide the opportunity to "leverage the power of each brand to accelerate growth" as well as strengthen its place in the consumer and retail market.
He adds that Yellow Partners has developed an "excellent relationship" with Nestlé and that it looks forward to ensuring a smooth transition as the sale comes to a close.
NestlĂ©âs key partners:
Starbucks: Nestlé partners with Starbucks to market, distribute, and sell packaged Starbucks-branded coffee and tea products globally outside of Starbucks retail coffeehouses.
CEO: Brian Niccol | Headquarters: Seattle, Washington, US
General Mills: Nestlé joined General Mills in a 50/50 joint venture to manufacture and market breakfast cereals in over 130 countries worldwide outside North America.
CEO: Jeffrey Harmening | Headquarters: Minneapolis, Minnesota, US
Fonterra: Nestlé collaborates with dairy cooperative Fonterra through joint strategic sourcing, dairy ingredient supply, and regional production alliances across Latin America and Oceania.
CEO: Richard Allen | Headquarters: Auckland, New Zealand
L'Oréal: Nestlé holds a long-standing strategic cross-shareholding equity partnership with L'Oréal, collaborating on nutritional cosmetics, research, and functional beauty innovation initiatives globally.
CEO: Nicolas Hieronimus | Headquarters: Clichy, France
Executives
Dana Schmaltz
Managing Partner
Philipp Navratil
Chief Executive Officer
