Nestle sells mainstream vitamin business to Yellow Wood Partners for $1 billion

Terms of the $1 billion transaction

Nestle agreed on Tuesday to sell its mainstream vitamins, minerals, and supplements business to Boston-based private equity firm Yellow Wood Partners for $1 billion. In local currency terms, the transaction represents a valuation slightly above 800 million Swiss francs. The agreement encompasses seven consumer supplement brands: Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride, and Sisu. It also transfers Nestle's United States private-label supplements business, including dedicated facilities for manufacturing, packaging, warehousing, and logistics. The divested assets generated $1.2 billion in sales throughout 2025, operating predominantly in the United States alongside market presence in Canada and China. Both companies project the transaction to achieve regulatory completion during the first half of 2027.

Portfolio restructuring under Philipp Navratil

The sale represents the latest step in a broader turnaround led by chief executive officer Philipp Navratil, who assumed leadership of the Swiss conglomerate exactly one year ago. Navratil has systematically narrowed Nestle's commercial focus toward core categories such as coffee, petcare, and food and snacks. Earlier this year, Nestle sold half of its water business and initiated steps to offload its ice cream interests through joint ventures, matching portfolio streamlining strategies pursued by peers Unilever and Reckitt. The initial strategic review of the vitamin assets began in the summer of 2025 under Navratil's predecessor, Laurent Freixe. Several of the brands included in the current sale, notably Nature's Bounty, were originally purchased by Nestle in 2021 as part of a $5.75 billion acquisition of The Bountiful Company.

We are focusing our resources where we have the strongest competitive advantage.

Capital allocation and premium brand retention

While divesting its mainstream assets, Nestle will retain its premium, science-based health lines, which include the Solgar brand acquired in the 2021 Bountiful deal and Pure Encapsulations. Company leadership noted that while the mainstream segment requires separate dedicated ownership, the premium segment continues to demonstrate strong performance. In an interview in Zurich, Navratil stated that the divestment frees up operational time for corporate teams to concentrate on core priorities. Proceeds from the $1 billion transaction will be directed toward reducing company debt. Management anticipates that lower debt will improve financial flexibility and establish conditions for future inorganic acquisitions once balance sheet metrics normalize. Nestle shares have regained ground over the past year but remain well below their 2022 peak.

When the leverage is in the right range, it will obviously open up optionality. And obviously we will always be open to look at exciting opportunities that are inorganic as well.

Yellow Wood carve-out strategy and market activity

For Yellow Wood Partners, the purchase represents its sixth corporate carve-out from large consumer goods conglomerates since 2019. The Boston private equity firm has built a track record of acquiring non-core units, having previously bought lip balm brand ChapStick from Haleon and consumer division Elida Beauty from Unilever. Dana Schmaltz, a partner at Yellow Wood, stated that establishing the acquired brands as an independent, standalone business will create operating leverage to accelerate sales growth and product innovation. The transaction takes place against active dealmaking in the broader nutritional supplement market. Procter & Gamble agreed last month to acquire supplements manufacturer Thorne in a transaction valued at $3.8 billion, while Unilever bought multivitamin producer Grüns earlier this year.