Nestle Advances $5.75 Billion Perrier and San Pellegrino Deal, Reports FT

• The stake sale could value Nestle's water business at about 5 billion euros ($5.75 billion)
• Three private equity firms—CD&R, KKR, and PAI—have advanced to the next bidding round for the 50% stake
• Platinum Equity has also expressed interest in acquiring part of the water business, according to sources familiar with the matter

Summary: Nestle Advances $5.75 Billion Water Business Sale

Key Transaction Details:

Nestle is progressing with the sale of a 50% stake in its water business, which includes premium brands Perrier and San Pellegrino. The deal values the entire water business at approximately 5 billion euros ($5.75 billion).

Companies Involved:

Three private equity firms have advanced to the next bidding round:

• CD&R
• KKR
• PAI Partners

Additionally, Platinum Equity has expressed interest in the transaction, according to the Financial Times report citing sources familiar with the matter.

Market Context:

This divestiture represents a significant step in Nestle's portfolio restructuring strategy. The Swiss food and beverage giant is selling a major stake in its water division, which houses iconic mineral water brands that command premium positioning in the global bottled water market.

Transaction Structure:

Rather than a complete exit, Nestle is pursuing a 50% stake sale, suggesting the company intends to maintain partial ownership and potentially benefit from the expertise of a private equity partner while raising substantial capital.

Verification Status:

Reuters noted it could not immediately verify the Financial Times report independently.

Investment Implications:

The involvement of multiple heavyweight private equity firms signals strong market interest in premium water brands despite broader sustainability concerns around bottled water. The transaction size and competitive bidding process suggest confidence in the continued growth potential of the premium bottled water segment. For Nestle shareholders, this sale could provide capital for redeployment into higher-growth categories or return to shareholders while maintaining exposure to the water business through the retained 50% stake.