Nestlé is selling its mainstream vitamins, minerals, and supplements business—including legacy household brands Nature’s Bounty and Osteo Bi-Flex—to private equity firm Yellow Wood Partners for $1 billion, according to an official corporate announcement. CEO Philipp Navratil stated that the divestment marks a strategic portfolio transformation designed to refocus company resources on premium brands like Solgar and Pure Encapsulations where Nestlé holds the strongest competitive advantage.
Nestlé Sells Mainstream Supplements to Yellow Wood Partners
The transaction covers several major wellness brands, including Ester-C, Gard, Nuun, Puritan’s Pride, and Sisu, alongside the associated U.S. private-label supplement operations, manufacturing, packaging, warehousing, and distribution facilities. According to industry strategist Marc Brush, the $1 billion price tag contrasts sharply with the $5.75 billion Nestlé paid to acquire The Bountiful Company in 2021. The mainstream Holistic Health portfolio generated $1.2 billion in sales in 2025.
Greg Horn, managing director and partner at William Hood and former CEO of GNC and Garden of Life, noted that Nestlé’s decision reflects a long-term playbook. “Companies like Nestlé think in longer time frames and they eventually sold the parts they didn’t want,” Horn stated, adding that he was not surprised by the move.
Did you know? Nature’s Bounty is ranked as the number two overall VMS brand in the United States, with products consumed in more than 20% of U.S. households, according to data provided by Yellow Wood Partners.
Portfolio Shift from Mainstream to Premium Science-Forward Brands
The strategic review of Nestlé’s VMS assets began last year under previous CEO Laurent Freixe, who initiated a $2.8 billion cost-cutting effort to address sluggish performance and focus capabilities on science and innovation. By offloading mainstream assets, Nestlé is leaning further into high-growth science-forward wellness lines.
Marc Brush characterized the divested assets as distressed, noting that Yellow Wood acquired the legacy brands for less than 1x sales after a review process lasting over a year. By comparison, Procter & Gamble acquired Thorne for $3.6 billion—roughly six times estimated sales—illustrating a broader market shift away from budget products toward premium offerings, according to Brush’s analysis.
Yellow Wood Expands Consumer Footprint With Carveout Strategy
For Yellow Wood Partners, the acquisition represents its sixth significant carveout from a major global consumer goods company, following deals with Bayer, Reckitt, Unilever, and Haleon. Dana Schmaltz, partner at Yellow Wood, stated in a press release that running Holistic Health as a standalone business will allow the firm to invest directly in individual brand market positions and deep retailer relationships.
Michael Bush, managing partner at GrowthWays Partners, described the transaction as a natural bolt-on for Yellow Wood. The firm’s existing portfolio includes household and personal care staples like Q-tips, Chapstick, Suave, and Dr. Scholl’s, which share a consumer demographic closely aligned with Nature’s Bounty and Puritan’s Pride, according to Bush. However, Marc Brush cautioned that outside investors often face steep challenges managing the complex supply chains and regulatory frameworks inherent to the supplement industry.
Frequently Asked Questions
What brands are included in the sale to Yellow Wood Partners?
The sale includes Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride, Sisu, and the U.S. private-label supplements business, along with dedicated manufacturing and distribution operations.
How much did Yellow Wood pay for the Nestlé supplement assets?
Yellow Wood Partners acquired the mainstream Holistic Health portfolio for $1 billion, according to company disclosures.
Why is Nestlé selling these supplement brands?
CEO Philipp Navratil stated that the company is focusing resources on areas with the strongest competitive advantage, specifically premium and science-forward brands like Solgar and Pure Encapsulations.
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