Nestlé to divest water business stake as Perrier and S.Pellegrino unit draws private equity interest
Nestlé advances plans to sell a stake in its water division as global investors line up to bid for the premium brands.
FRANCE – Nestlé SA is pressing ahead with plans to sell a stake in its €5 billion (US$5.8 billion) water business, which includes iconic brands such as Perrier and S.Pellegrino, according to people familiar with the matter cited by Bloomberg.
The Swiss food group has asked potential buyers to submit first-round bids this month as it moves forward with the transaction.
The sources said Nestlé is working with Rothschild & Co. to manage the sale process. Several major private equity firms, including PAI Partners, Blackstone Inc., KKR & Co., Bain Capital and Clayton Dubilier & Rice, have already expressed interest in the asset.
Bankers are preparing debt financing of between €2 billion and €3 billion (US$2.3 billion to US$3.5 billion) to support a possible deal, the people said. The funding is expected to take the form of leveraged loans denominated in both euros and US dollars.
One source added that the planned debt equates to roughly four to six times the water unit’s estimated €500 million (US$580 million) in earnings before interest, taxes, depreciation and amortisation.
However, the people stressed that “deliberations are ongoing and no final decisions on the size or timing of the stake sale have been made,” as discussions with potential investors continue.
Nestlé first announced plans to separate its water business in late 2024 as part of a wider restructuring programme. The move gained fresh momentum following a leadership shake-up that led to the appointment of Chief Executive Officer Philipp Navratil in September.
While the water unit is regarded as a portfolio of premium global brands, investors are also weighing environmental concerns surrounding bottled water as well as recent regulatory scrutiny. In 2024, Nestlé acknowledged it had used filtering methods deemed illegal for natural mineral waters.
More recently, the group recalled selected baby formula products after identifying potential contamination with cereulide.
“The safety and wellbeing of infants remain our top priority,” Nestlé said, urging parents and caregivers to follow guidance from local health authorities and contact the company if they believe they purchased affected products.
The proposed sale of a stake in the water division marks a significant step in Nestlé’s ongoing efforts to reshape its portfolio while maintaining focus on its core global brands.
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