The Holistic Health portfolio generated $1.2 billion in sales in 2025, Nestlé reported. The sale covers seven brands: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu.
Also included are Nestlé’s associated U.S. private-label supplements business and dedicated manufacturing, packaging, warehousing and distribution operations.
Nestlé confirmed the move will allow it to concentrate on premium, science-led VMS brands, including Solgar and Pure Encapsulations.
Nestlé narrows VMS focus
In its press announcement, Nestlé described the divestment as part of its ongoing portfolio changes, arguing that its mainstream VMS business would benefit from dedicated ownership.
“This is another important step in the strategic transformation of our portfolio,” said Philipp Navratil, CEO of Nestlé, in the statement.
“We are focusing our resources where we have the strongest competitive advantage,” he added.
Navratil also said the company was “well positioned for growth” in premium, science-led VMS and highlighted the performance of Solgar and Pure Encapsulations.
The business headed to Yellow Wood operates mainly in the United States but also has a presence in markets including Canada and China, according to Nestlé.
Sale follows 2025 review
The deal provides an outcome to a strategic review NutraIngredients reported in July 2025.
Nestlé was reviewing assets acquired through The Bountiful Company deal, including Nature’s Bounty, Osteo Bi-Flex and Puritan’s Pride. At the time, the company said VMS growth had been affected by the discontinuation of some private-label business and weaker performance among its mainstream brands, particularly Puritan’s Pride.
Michael Bush, managing partner at GrowthWays Partners, told NI at the time that Nestlé’s greater focus on premium and growth brands made sense amid pressure in the private-label and commodity supplement market.
“It will be interesting to see which assets are sold off and who will acquire them,” Bush said.
“It may make sense to split it up, as the potential buyer universe for the brands and private label/manufacturing may be quite different,” he added.
Yellow Wood will ultimately take both sides of the business. Nestlé’s announcement confirmed that the deal covers the seven brands as well as the associated U.S. private-label operation and dedicated manufacturing, packaging, warehousing and distribution assets.
Yellow Wood bets on VMS growth
Nature’s Bounty is the largest brand highlighted by Yellow Wood, which described it as the number two overall VMS brand and a leading women’s health brand in the United States in its press announcement.
Yellow Wood also reported that Nature’s Bounty products are consumed in more than 20% of U.S. households. The private equity firm identified hydration, gut health and immunity as areas where it sees growth potential across the portfolio.
“Holistic Health is an excellent platform of trusted brands with deep retailer relationships providing significant opportunities for continued growth,” said Dana Schmaltz, partner at Yellow Wood in the release.
Schmaltz added that running Holistic Health as a standalone business would give Yellow Wood an opportunity to invest in the individual brands and their market positions.
Tad Yanagi, partner at Yellow Wood, also pointed to growing VMS adoption and demand for benefit-specific products as drivers for the business. “We believe that by implementing the Yellow Wood Consumer Operating DNA model, we can accelerate the growth of all of these brands as we have done with other category-defining carveouts such as Q-tips, Chapstick, Suave and Dr. Scholl’s,” Yanagi said.
The acquisition will be Yellow Wood’s sixth significant carveout from five major global consumer companies, according to the firm. Its previous transactions have involved Bayer, Reckitt, Unilever and Haleon.
Both Nestlé and Yellow Wood said the deal remains subject to regulatory approvals and is expected to close by the first half of 2027.
