Nestle sells VMS unit for $1 billion

Nestle has agreed to sell its vitamins, minerals and supplements business to the US private equity firm Yellow Wood Partners for $1 billion. The Swiss food giant announced the deal on Tuesday.

CEO Philipp Navratil said the transaction represents another important step in the strategic transformation of the company's portfolio. It will allow Nestle to focus its resources where it holds the strongest competitive advantage.

The Transaction Details

The $1 billion sale includes seven well-known consumer brands. It also encompasses Nestle's US private-label supplements operation. The company stated the transaction is likely to be completed during the first half of 2027.

The brands involved in the deal are listed below.

Strategic Rationale

In a statement, Navratil explained the company's reasoning. He said Nestle is well positioned for growth in the premium, science-led VMS space with brands like Solgar and Pure Encapsulations. However, the mainstream VMS business has evolved. It now requires a different approach under dedicated ownership, according to the CEO.

This sale marks Yellow Wood Partners' sixth acquisition from a major consumer goods company since 2019. The Boston-based firm has expanded its portfolio through several notable purchases. These include ChapStick from Haleon in 2024 and Unilever's Elida Beauty non-core beauty and personal care business in 2023.

Nestle's Focus on India

Separately, CEO Philipp Navratil highlighted India's growing importance for Nestle. During a visit to the country, he said India could soon rank among Nestle SA's top five markets by revenue. He called this milestone on the horizon.

India is already among Nestle's top ten markets globally. News agency PTI reported that India was Nestle's strongest-performing market by growth in the first half of 2026.

Navratil said top five is definitely on the horizon and is not something that will happen 20 years down the road.

He cited urbanization, a growing middle class, and Nestle's wide distribution network as key drivers for growth in India. The company also sees potential for India to become a larger manufacturing and export hub. Nestle India currently exports products to around 30 countries.

Investment and Manufacturing Plans

Nestle plans to increase its investments in India as the market expands. Navratil indicated that spending in the country is expected to remain above the group's average investment level.

He stated that investment in India should be consistent, and as India grows above the group average, the investment will also be above the group average in this country.

The company currently operates nine manufacturing plants in India. A tenth facility is under development in Odisha. This follows a ₹5,000 crore investment announcement for India made by Nestle in 2022.