Nestlé to sell vitamins and supplements business US$1B
The divestment covers Nature’s Bounty, Osteo Bi-Flex and Puritan’s Pride as Nestlé focuses its portfolio on coffee, petcare, food and snacks.
SWITZERLAND – Swiss food manufacturer Nestlé has agreed to sell its mainstream vitamins and supplements business to US private equity firm Yellow Wood Partners for US$1 billion as the company moves to streamline its portfolio.
The transaction includes brands such as Nature’s Bounty, Osteo Bi-Flex and Puritan’s Pride, as well as Nestlé’s US private-label supplements business and related manufacturing and logistics operations.
Nestlé CEO Philipp Navratil said the transaction forms part of the company’s broader portfolio transformation.
“This is another important step in the strategic transformation of our portfolio,” Navratil said.
The divestment is part of Nestlé’s efforts to focus on businesses it identifies as priority growth areas, including coffee, petcare, food and snacks. The company sold half of its water business earlier in 2026 and is also divesting its ice cream interests.
Navratil said the sale would allow teams to devote greater attention to the company’s priority businesses.
The divestment “frees up a lot of time” for teams to focus on priority areas, Navratil said in an interview in Zurich.
Proceeds from the transaction will be used to reduce Nestlé’s leverage, potentially creating greater flexibility for future acquisitions.
“When the leverage is in the right range, it will obviously open up optionality,” Navratil said. “And obviously we will always be open to look at exciting opportunities that are inorganic as well.”
Nestlé’s mainstream vitamins and supplements business generated US$1.2 billion in sales in 2025 and operates predominantly in the United States.
The transaction comes amid continued activity in the vitamins and supplements sector. Procter & Gamble announced last month that it would acquire supplement maker Thorne in a deal valued at US$3.8 billion, while Unilever said earlier in 2026 that it would acquire multivitamin company Grüns.
Nestlé said it remains positioned for growth in the more premium vitamins and supplements segment through brands including Solgar and Pure Encapsulations.
The Nestlé transaction is expected to close during the first half of 2027, subject to customary conditions.
For Yellow Wood Partners, the acquisition marks its sixth purchase from major consumer companies since 2019. Previous transactions include the acquisition of ChapStick from Haleon and Unilever’s non-core beauty and personal care division, Elida Beauty.
Yellow Wood Partner Dana Schmaltz said operating the acquired brands as a standalone business would support their development.
“Operating the acquired brands as a standalone entity will create leverage for faster growth and enhanced innovation,” Schmaltz said.
The transaction represents another portfolio change under Navratil as Nestlé continues its efforts to streamline operations, reduce leverage and focus resources on its priority businesses.
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