Nestlé’s $1bn VMS sale: overview
- Nestlé has agreed to sell mainstream VMS portfolio to Yellow Wood Partners
- Deal valued at $1bn includes seven established supplement brands
- Transaction covers manufacturing, packaging, warehousing distribution, and private-label operations
- Nestlé will focus on premium science-led VMS growth segments
- Sale should close by first half of 2027 pending regulatory approvals
Nestlé has announced the sale of its mainstream Vitamins, Minerals and Supplements business (VMS), part of the Holistic Health portfolio, to private equity firm Yellow Wood Partners.
The deal worth $1bn (CHF 0.8bn) comprises seven established brands – Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu, and its associated US private-label supplements business – which together generated $1.2bn in sales in 2025 alone.
The deal also includes all dedicated manufacturing, packaging, warehousing and distribution operations.
“This is another important step in the strategic transformation of our portfolio” says Nestlé CEO Philipp Navratil. “We are focusing our resources where we have the strongest competitive advantage.”
However, the Swiss multinational isn’t exiting the VMS category completely, holding onto premium brands including Solgar and Pure Encapsulations, as it sharpens focus on higher-growth segments of the market.
“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,” says Navratil. “At the same time, the category has evolved, and the mainstream VMS business requires a different approach under dedicated ownership.”
Echoing this sentiment, Yellow Wood partner Tad Yanagi says he believes that “by implementing the Yellow Wood Consumer Operating DNA model” it can accelerate the growth of the brands as it has done with other carveouts such as Q-tips, Chapstick, Suave and Dr. Scholl’s.
“As VMS adoption continues to increase among a wide range of consumers and demand for benefit-specific solutions expands, we see significant runway to drive organic growth across the platform,” he adds.
The divestment represents the latest move in Nestlé’s wider portfolio transformation strategy under Navratil, who has now been in the role for exactly one year.
As part of this effort, the company is concentrating resources on higher-growth businesses and categories where it believes it can win, including premium, science-led nutrition.
The transaction is expected to close by the first half of 2027, following regulatory approvals.
