Yellow Wood Partners, a US-based private equity firm focused exclusively on investing in consumer brands and companies, has agreed to acquire Nestlé’s mainstream Vitamins, Minerals and Supplements (VMS) business – the Holistic Health portfolio – for US$1bn.
“This is another important step in the strategic transformation of our portfolio” said Philipp Navratil, CEO, Nestlé. “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.”
The scope of the transaction comprises seven established brands: Nature’s Bounty, Osteo Bi-Flex, Ester-C, Gard, Nuun, Puritan’s Pride and Sisu, together with the associated US private-label supplements business, dedicated manufacturing, packaging, warehousing and distribution operations.
“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.
Tad Yanagi, partner at Yellow Wood believes that by implementing the firm’s Consumer Operating DNA model, Yellow Wood can accelerate the growth of all of the brands.
Perella Weinberg Partners and Canaccord Genuity served as financial advisors to Yellow Wood. Goodwin Procter was legal counsel.
