Swiss food giant Nestlé has agreed to sell its vitamins, minerals and supplements (VMS) business to US-based private equity firm Yellow Wood Partners for $1 billion.
The deal is part of Nestlé’s plan to simplify its business and focus more on areas where it sees stronger growth opportunities.
Nestlé said the sale will allow the company to put more resources into businesses where it has a strong competitive position.
Nestlé CEO Philipp Navratil said the deal is an important step in the company’s plan to change and strengthen its portfolio.
The company said it will continue to focus on the premium, science-based vitamins and supplements market. Brands such as Solgar and Pure Encapsulations are performing strongly in this segment.
At the same time, Nestlé said the mainstream vitamins and supplements business needs a different strategy and could benefit from having a separate owner.
The transaction is expected to be completed in the first half of 2027, subject to the usual closing conditions.
For Yellow Wood Partners, the acquisition will be another major addition to its consumer products portfolio.
The Boston-based private equity firm has been actively buying businesses from large consumer goods companies in recent years.
Yellow Wood Partners has completed several notable deals since 2019.
In 2024, the firm acquired ChapStick from Haleon. In 2023, it acquired Elida Beauty, a non-core beauty and personal care business from Unilever.
The Nestlé transaction will further expand Yellow Wood’s presence in the consumer health and wellness market.
For Nestlé, the sale is mainly about focusing its money and management attention on businesses it considers more strategically important.
The company will continue investing in areas where it believes it has strong brands, innovation capabilities and long-term growth potential.
For consumers, the deal could mean changes in how some vitamins and supplements brands are managed in the future, although the transaction is not expected to be completed until 2027.
Nestlé is selling its vitamins, minerals and supplements business to Yellow Wood Partners for $1 billion.
The deal reflects Nestlé’s broader strategy of reshaping its portfolio and concentrating on businesses where it believes it has the strongest competitive advantage. For Yellow Wood, it is another major acquisition as the private equity firm continues to expand its consumer brands portfolio.
