Nestlé Sells Vitamin Unit
Nestlé Agrees to Sell Vitamin Brands to Yellow Wood for $1 Billion
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Key Points
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Navratil took over as CEO exactly a year ago and has actively reduced Nestlé's exposure to non-core consumer categories, including moving ice cream and some water brands into joint ventures as part of portfolio simplification.
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Nestlé aims to grow in the premium vitamins and supplements segment, with Navratil saying the company is well positioned to expand in science-based premium VMS where Solgar and Pure Encapsulations are delivering solid performance.
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Yellow Wood Partners has a track record of large acquisitions and plans to operate the acquired VMS brands as a standalone entity to accelerate growth and innovation; the firm has previously acquired ChapStick from Haleon and Elida Beauty from Unilever.
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The deal occurs amid broader industry consolidation, with peers like Procter & Gamble recently agreeing to acquire Thorne for $3.8 billion, reflecting a trend toward wellness-focused acquisitions.
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The sale scope includes not only the seven brands but also U.S. private-label supplements along with manufacturing, packaging, storage and distribution activities linked to the VMS business.
Nestlé has agreed to sell its mainstream vitamins and supplements business to private equity firm Yellow Wood Partners for $1 billion, according to Brand Icon Image. CEO Philipp Navratil, who took over exactly a year ago, is using the deal to sharpen focus on higher-growth areas like coffee and pet care. The unit generated about $1.2 billion in sales in 2025.
The sale covers seven brands including Nature's Bounty, Osteo Bi-Flex, and Ester-C, plus U.S. private-label supplements, 24 News HD reported. Nestlé will keep Solgar, its premium vitamin brand, as part of a broader strategy to compete in the higher-end wellness market. The deal is expected to close in the first half of 2027 after regulatory approvals.
Navratil's Year of Portfolio Streamlining
Since taking the helm last year, Navratil has aggressively pruned Nestlé's non-core businesses. The company moved ice cream and some water brands into joint ventures as part of a broader simplification effort. The vitamin sale is the latest step in repositioning the Swiss food giant around its strongest competitive advantages.
Proceeds from the $1 billion deal will strengthen Nestlé's balance sheet and preserve cash for future strategic opportunities in core growth areas, Axios stated. By shedding the mainstream supplement brands, Navratil frees up resources to invest in premium wellness products where the company already has strong footing.
Yellow Wood's Track Record of Major Acquisitions
This is Yellow Wood Partners' sixth major acquisition since 2019, showing the private equity firm's appetite for consumer brands. The company previously acquired ChapStick from Haleon and Elida Beauty from Unilever. Yellow Wood plans to operate the Nestlé vitamin brands as a standalone entity to accelerate growth and innovation.
The deal package includes not just the seven vitamin brands but also manufacturing, packaging, storage and distribution operations linked to the business. This gives Yellow Wood a complete operating platform to scale the acquired brands independently and pursue new market opportunities.
Wellness Industry Consolidation Accelerates
The Nestlé deal is part of a broader trend sweeping the wellness sector. Procter & Gamble recently agreed to buy Thorne for $3.8 billion, signaling that major consumer companies view premium supplements as strategic growth drivers. Democrata noted that Nestlé's sale price of $1 billion converted to 862.6 million euros.
Navratil says Nestlé is well positioned to expand in science-based premium vitamins where its Solgar and Pure Encapsulations brands are performing solidly. By divesting mainstream supplements and redeploying capital, the company aims to capture more profitable opportunities in the fast-growing premium wellness segment.
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