The deal, announced on Tuesday, covers seven brands — Nature's Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan's Pride and Sisu — as well as Nestlé's US private-label supplements business.
Together, the businesses generated $1.2 billion in sales in 2025, according to Nestlé.
The sale marks another step in Navratil's effort to reshape the world's largest food company. Having taken over as chief executive exactly a year ago, Navratil has sought to reduce Nestlé's exposure to businesses that do not fit its longer-term growth strategy, including ice cream and water brands, some of which have been moved into joint ventures.
The approach mirrors a broader trend among multinational consumer-goods companies such as Unilever and Reckitt, which have been selling non-core operations while concentrating resources on categories considered to offer stronger growth.
“We are focusing our resources where we have the strongest competitive advantage,” Navratil said.
He added that the mainstream vitamins, minerals and supplements business “requires a different approach under dedicated ownership.”
A major portfolio reshuffle
Nestlé's decision to sell the brands comes only a few years after it significantly expanded its presence in the supplements market.
In 2021, the company acquired several of the businesses, including Nature's Bounty, as part of its $5.75 billion purchase of The Bountiful Company.
The latest transaction effectively reverses part of that expansion, allowing Nestlé to redirect capital and management attention toward areas where it believes it has a stronger competitive position.
The company will, however, retain Solgar, its premium vitamins and supplements brand. The move allows Nestlé to maintain a presence in the health and wellness sector while exiting the more mainstream portion of the market.
The strategy reflects an increasingly common shift among global consumer companies, which are seeking to simplify their operations after years of building broad portfolios of brands across food, personal care, health and wellness.
Private equity buyer sees growth potential
For Yellow Wood Partners, the transaction represents an opportunity to acquire a group of established consumer health brands and operate them independently.
Dana Schmaltz, a partner at Yellow Wood, said separating the brands from Nestlé would allow the business to move more quickly and invest more aggressively in product development.
Operating the acquired brands as a standalone entity will create leverage for “faster growth and enhanced innovation,” Schmaltz said.
The deal is Yellow Wood's sixth acquisition from a major consumer-goods company since 2019. Its previous transactions include the purchase of ChapStick from Haleon and Unilever's non-core beauty and personal-care division, Elida Beauty.
The private equity firm's strategy has increasingly focused on acquiring established consumer brands that larger corporations no longer consider central to their operations, with the aim of giving them dedicated management and capital for expansion.
Health and wellness remains a hot market
Nestlé's exit from its mainstream supplements portfolio comes even as the wider health and wellness market continues to attract major consumer-goods companies.
Last month, US consumer-products giant Procter & Gamble agreed to acquire supplements maker Thorne for $3.8 billion, underscoring the sector's appeal to companies looking for growth beyond traditional household and personal-care products.
The contrast between the two transactions highlights the different strategies being pursued across the industry. While some companies are increasing their exposure to supplements and wellness, Nestlé is narrowing its focus and retaining only brands it considers strategically valuable.
The transaction with Yellow Wood is expected to close in the first half of 2027, subject to customary closing conditions.
For Navratil, the sale is another indication that his tenure at Nestlé will be defined not simply by expanding the company's brand empire, but by deciding which parts of that empire deserve continued investment.
The challenge now will be to translate a leaner portfolio into faster growth while ensuring that the businesses Nestlé retains can deliver the scale and profitability expected by investors.