Nestlé nears deal to sell stake in €5bn Perrier unit
Swiss group races to agree terms with Platinum Equity for water business, whose brands include San Pellegrino
Private equity group Platinum Equity is nearing a deal to acquire a stake in Nestlé’s European water business that would value the company at close to €5bn.
The two sides are racing to agree terms for the sale of about 50 per cent of the unit ahead of Nestlé’s half-year trading update on Thursday, according to people familiar with the matter.
The deal would be structured as a joint venture valuing the maker of San Pellegrino and Perrier at almost €5bn, the people said.
The agreement would cap an arduous sale process for the Swiss food giant.
The KitKat and Nespresso maker first indicated it would offload the brands in 2024. It separated the division from the rest of the company in 2025 and earlier this year confirmed that a process was under way.
Platinum Equity, led by billionaire founder Tom Gores, emerged as the sole bidder after rival groups, including KKR, CD&R and PAI Partners, exited the auction for the business.
The sale has been complicated by legal controversies, including raids earlier this year by French authorities at two of its bottling sites as part of a fraud investigation.
In 2024, the company was embroiled in a water purity scandal in France after a media investigation found a third of mineral water sold in the country had been illegally treated. Nestlé admitted to using prohibited treatment methods. Last year, the water business accounted for about 3.5 per cent of its group sales.
“It’s not a straightforward deal,” said one of the people with knowledge of the process.
California-based Platinum has about $48bn of assets under management and invests across private equity and credit. It has invested in other consumer businesses, including the European biscuit manufacturer Biscuit International and the dairy group Horizon Organic.
Nestlé’s move to reduce its stake in the water business comes as the group undertakes a strategic overhaul led by its new chief executive Philipp Navratil and chair Pablo Isla, the former boss of fast-fashion group Inditex.
The coffee and pet food giant is simplifying its organisational structure to focus on fewer categories. The group is also looking for a buyer for its mainstream vitamins businesses.
Nestlé has previously partnered with private equity groups on joint ventures for its assets, including teaming up with investment firm PAI for both its ice cream business Froneri and its European frozen pizza unit.
In 2021, Nestlé agreed a $4.3bn deal with US private equity firm One Rock Capital to sell its North American water business, which included the Poland Spring and Pure Life brands.
Nestlé and Platinum declined to comment.