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Nestle to divest mainstream supplements business for $1 billion - Finance news and analysis from Global Banking & Finance Review
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Nestle to divest mainstream supplements business for $1 billion

Published by Global Banking & Finance Review

Posted on September 1, 2026

2 min read

· Last updated: September 1, 2026

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Nestle to Sell Mainstream Supplements Business in $1 Billion Deal

Overview of Nestle's Divestment of Holistic Health Platform

Details of the $1 Billion Deal

Sept 1 (Reuters) - Nestle on Tuesday agreed to divest Holistic Health platform, its mainstream vitamins, minerals and supplements (VMS) business, to private equity firm Yellow Wood Partners for $1 billion, according to a statement from the two companies.

Brands Included in the Transaction

The deal includes seven brands — Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu — and the U.S. private-label supplements business, the Swiss food giant said in its statement.

Strategic Rationale from Nestle

"We are focusing our resources where we have the strongest competitive advantage", Nestle CEO Philipp Navratil said, adding that "the mainstream VMS business requires a different approach under dedicated ownership". 

Timeline and Background of the Acquisition

The deal, which is expected to close by the first half of 2027, is Yellow Wood's sixth acquisition from major consumer companies since 2019.

Yellow Wood Partners' Recent Acquisitions

The Boston-based firm acquired lip balm brand ChapStick from Haleon in 2024, and Unilever's non-core beauty and personal care division Elida Beauty in 2023. 

Reporting and Editorial Credits

(Reporting by Chandni Shah in Bengaluru; Editing by Shailesh Kuber and Joyjeet Das)

Key Takeaways

  • Nestlé is divesting mainstream and value VMS brands including Nature’s Bounty, Osteo Bi‑Flex, Ester‑C, Gard, Nuun, Puritan’s Pride and Sisu, alongside its U.S. private‑label supplements business, for $1 billion to Yellow Wood Partners. (nestle.com)
  • The move is part of Nestlé’s strategic shift to focus on premium VMS brands—such as Garden of Life, Solgar and Pure Encapsulations—where it sees stronger competitive advantages. (nestle.com)
  • The divestiture aligns with Nestlé’s ongoing portfolio optimization, following its 2021 $5.75 billion acquisition of core Bountiful Company brands; now, it is shedding lower‑margin mainstream assets. (nestlehealthscience.com)
  • Yellow Wood Partners, a Boston‑based private equity specialist in consumer‑brand acquisitions, has completed multiple deals including ChapStick and Elida Beauty; this marks its sixth major consumer acquisition since 2019. (prnewswire.com)
  • The deal is expected to close by H1 2027, giving Yellow Wood ownership of a substantial mainstream supplements portfolio and Nestlé opportunity to reallocate resources to higher‑margin health‑science businesses. (nestle.com)

References

Frequently Asked Questions

Which business is Nestle divesting?
Nestle is divesting its Holistic Health platform, which consists of its mainstream vitamins, minerals, and supplements (VMS) business.
Who is acquiring Nestle's supplements business?
Yellow Wood Partners, a private equity firm, is acquiring the mainstream supplements business from Nestle.
What is the value of the Nestle supplements divestment deal?
The deal is valued at $1 billion.
Which brands are included in the transaction?
The transaction includes seven brands: Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride, and Sisu, as well as the U.S. private-label supplements business.
When is the deal expected to close?
The deal is expected to close by the first half of 2027.

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