Nestlé Sells VMS Business to Yellow Wood Partners for $1B

Nestlé has finalized the sale of its mainstream vitamins, minerals, and supplements (VMS) business to consumer-focused private equity firm Yellow Wood Partners. The transaction, valued at $1 billion (approximately 800 million CHF), marks a significant portfolio adjustment for the Swiss food conglomerate as it sharpens its focus on premium health science offerings.

The divested portfolio encompasses well-recognized brands such as Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride, and Sisu. This segment generated approximately $1.2 billion in sales in 2025. Yellow Wood Partners acquired these assets at a multiple of 0.83 times 2025 revenues, a valuation that reflects the evolving dynamics within the VMS market. The deal is anticipated to close in the first half of 2027, pending regulatory approvals.

This strategic divestiture aligns with Nestlé's stated objective to concentrate its resources on areas of its strongest competitive advantage. The company aims to bolster its global premium VMS segment, which includes brands like Garden of Life, Solgar, and Pure Encapsulations. According to Philipp Navratil, CEO of Nestlé, the mainstream VMS business necessitates a distinct strategic approach and dedicated ownership to thrive.

Yellow Wood Partners, known for its expertise in corporate carve-outs within the consumer goods sector, views this acquisition as a strategic platform for growth. The firm plans to operate the acquired business, referred to as Holistic Health, as a standalone entity. This approach is expected to unlock the potential of category leaders in high-growth segments such as hydration, gut health, and immunity, areas experiencing increased consumer demand. Dana Schmaltz, a partner at Yellow Wood, highlighted the strong retailer relationships and substantial growth opportunities inherent in the acquired brand portfolio.

The acquisition by Yellow Wood Partners is consistent with its established strategy of acquiring and enhancing established consumer brands. The firm has a track record of successful carve-outs, having previously acquired brands like Dr. Scholl's from Bayer, and Suave and Elida Beauty (including Q-tips, Caress, Tigi) from Unilever. This expertise in operational improvement and brand revitalization is expected to be applied to accelerate the growth of the newly acquired VMS brands, as noted by Tad Yanagi, another partner at Yellow Wood.

This transaction comes after Nestlé Health Science's prior acquisitions in the VMS space. In 2021, Nestlé acquired the core assets of The Bountiful Company for $5.75 billion from KKR, which included several of the brands now being divested. The subsequent acquisition of Nuun, a functional hydration brand, also in 2021, further illustrates Nestlé's prior expansion in this sector. The current divestiture signifies a strategic pivot, moving away from broader market segments towards specialized, science-backed premium products.