Nestle to Divest Vitamin Brands Including Nature's Bounty to Yellow Wood Partners for $1 Billion

Nestle has agreed to sell its portfolio of mainstream vitamins, minerals, and supplements to private equity firm Yellow Wood Partners in a deal valued at $1 billion. The move marks a significant step in the Swiss food giant's strategy to streamline its health science division and focus on higher-growth areas.

Transaction Overview

The divestiture, announced in a joint statement on Tuesday, encompasses a collection of well-known consumer health brands and Nestle's U.S. private-label supplements business. The companies expect the transaction to close by the first half of 2027.

The key brands included in the sale are:

• Nature’s Bounty
• Osteo Bi-Flex
• Ester-C
• Puritan’s Pride
• Nuun
• Gard
• Sisu

Nestle's Strategic Refocus

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According to Nestle, the sale is part of a broader effort to optimize its portfolio. "We are focusing our resources where we have the strongest competitive advantage," CEO Philipp Navratil said in the statement, noting that the divested business "requires a different approach under dedicated ownership."

This divestment allows Nestle to concentrate on its core health and wellness categories where it sees greater potential for competitive differentiation and growth. For investors, the move signals management's commitment to active portfolio management and reallocating capital toward more strategic assets.

Yellow Wood's Growing Portfolio

For Boston-based Yellow Wood Partners, the acquisition continues a pattern of purchasing non-core assets from major consumer goods corporations. This is the firm's sixth such deal since 2019.

Previous high-profile acquisitions by Yellow Wood include the lip balm brand ChapStick from Haleon in 2024 and Unilever's Elida Beauty division in 2023. The addition of Nestle's vitamin brands significantly expands Yellow Wood's presence in the consumer health and wellness market.