Nestlé will divest its mainstream vitamins, minerals and supplements (VMS) business to U.S. private equity firm Yellow Wood Partners for $1.0 billion, the Swiss food group announced on Tuesday. The transaction, subject to regulatory clearance, is scheduled to finalize in the first half of 2027.
The divested portfolio comprises brands including Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu, along with the associated U.S. private-label operations and manufacturing, packaging, storage and distribution facilities. The business generated $1.2 billion in revenue for Nestlé in 2025, with the majority of sales concentrated in the United States but also including markets such as Canada and China.
Nestlé Chief Executive Philipp Navratil stated the sale represents another key step in the company's portfolio transformation strategy. He noted the company would focus resources on areas where it holds the strongest competitive advantages, highlighting its premium VMS brands Solgar and Pure Encapsulations as growth drivers. These brands, rooted in the U.S., produce high-end vitamins, minerals and hypoallergenic micronutrients.
The disposal follows earlier restructuring moves, including the partial sale of Nestlé's European bottled water business and the divestment of the U.S. premium coffee chain Blue Bottle in the spring. The company has emphasized the need to adapt its mainstream VMS operations under new ownership to align with evolving market dynamics in the category.
