Nestlé has announced an agreement to sell its mainstream vitamins, minerals, and supplements (The Holistic Health Portfolio) business to Yellow Wood Partners for $1bn.
The transaction is expected to be completed by the first half of 2027, subject to regulatory approvals and closing conditions.
This move is part of the consumer business group’s strategy to streamline its portfolio of brands to focus on high-performing categories.
The transaction will include Nestlé’s entire portfolio of health-centered brands, including Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride, and Sisu.
Additionally, the deal includes a US private-label supplements business, dedicated manufacturing packaging, warehousing, and distribution operations.
According to Nestlé, the business reported sales of $1.2bn and primarily operates in the US with a presence in various other countries, including Canada and China.
Philipp Navratil, CEO, Nestlé said: “This is another important step in the strategic transformation of our portfolio. We are focusing our resources where we have the strongest competitive advantage.
“With Nestlé’s strong innovation and brand-building capabilities, we are well positioned for growth in the premium, science-led VMS space, where brands such as Solgar and Pure Encapsulations continue to perform strongly.
“At the same time, the category has evolved, and the mainstream VMS business requires a different approach under dedicated ownership.”
This follows an ongoing trend of major FMCG manufacturers offloading some brands to redirect their overall investments.
Last week Unilever confirmed a decision to sell British mustard brand Colman’s and is currently seeking potential buyers.
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