Nestlé pushes ahead with US$5.75B Perrier and San Pellegrino deal
Private equity firms advance in bidding for Nestlé’s water business stake as the company accelerates restructuring and shifts focus to higher-growth categories.
FRANCE – Nestlé’s planned sale of a significant stake in its European water business has progressed, with private equity firms Clayton, Dubilier & Rice (CD&R), KKR and PAI Partners advancing to the next round of bidding, according to Financial Times.
The proposed 50% stake sale could value the business at approximately €5 billion (US$5.75 billion). Platinum Equity has also expressed interest in the transaction, the report said, citing people familiar with the matter.
The Swiss consumer goods group has been working with investment bankers to explore options for the unit, which includes premium water brands such as San Pellegrino, Perrier and Acqua Panna. Bids for the stake were submitted earlier this month.
Nestlé previously appointed Rothschild to advise on the potential sale and has indicated its intention to retain a stake in the business.
Strategic restructuring gains momentum
The move forms part of a broader restructuring strategy led by CEO Philipp Navratil, aimed at streamlining operations and sharpening focus on higher-growth segments.
Recently, the company entered advanced negotiations to divest its remaining ice cream businesses in Asia, Canada and parts of Latin America to Froneri.
Nestlé said the potential sale aligns with its strategy to prioritise categories such as coffee, petcare, nutrition, and food and snacks.
Navratil underscored the company’s transformation efforts during the fourth-quarter results announcement. “We are accelerating execution with a leaner, more performance-driven organisation, and the stage is set for continuous improvement in 2026 and beyond,” he said.
In addition to the water and ice cream divestments, Nestlé is reviewing its vitamin and supplement portfolio and engaging with potential buyers as part of its portfolio optimisation strategy. The company is also preparing to deconsolidate its waters business from 2027.
For the financial year ending 31 December 2025, Nestlé reported total sales of CHF 89.49 billion ($115.97 billion), representing a 2% decline. However, organic growth reached 3.5%, supported by pricing growth of 2.8% and real internal growth of 0.8%.
