Nestlé to sell 50% of bottled water business to Platinum Equity for about €3 billion

A €3 billion partnership for Nestlé’s water brands

Nestlé has agreed to sell 50% of its bottled water business to private equity firm Platinum Equity for about €3 billion in cash. The companies will place the operation in a new joint venture named Peranel, with each partner holding an equal 50% interest. According to their joint announcement, the new company has an enterprise value of €4.9 billion.

The portfolio includes internationally recognized bottled water brands Perrier and S.Pellegrino. Newmoney.gr and Mononews report that Platinum Equity, backed by billionaire Tom Gores, prevailed over other prospective investors competing for the business. The transaction gives the investment firm direct exposure to established premium water brands while allowing Nestlé to retain half of the operation and participate in its future performance.

The structure is more than a conventional disposal. Nestlé receives a substantial cash payment but remains a co-owner, transferring part of the capital commitment and operating exposure to a financial partner. For producers, bottlers and distributors connected to the portfolio, Peranel’s creation means that decisions on investment, brand development and operating priorities will now be made within a jointly controlled company.

Portfolio restructuring gathers pace

The agreement forms part of the restructuring program led by Nestlé chief executive Philipp Navratil. The Swiss group is seeking to reduce its exposure to businesses with weaker performance and concentrate resources on its strongest brands and more attractive product categories. The water transaction converts a wholly controlled operation into a 50%-50% partnership without removing Nestlé from the category altogether.

The group has already taken other steps to simplify its portfolio. In April, Nestlé announced the sale of the Blue Bottle Coffee chain. It is also holding discussions with potential investors concerning its vitamins and dietary supplements business, which the reports describe as facing performance difficulties. Together, the moves indicate a broader review of assets rather than an isolated decision affecting bottled water.

The water unit has encountered several pressures in recent years. Both Newmoney.gr and Mononews cite subdued consumer demand, as well as investigations and legal disputes involving filtration and treatment methods used for certain bottled water products. Those issues have weighed on a business that contains valuable global brands but has not met the group’s performance expectations.

Sales growth provides room for selective disposals

Nestlé announced the transaction alongside first-half results that were slightly stronger than market expectations. Organic sales increased by 3.6%, compared with analysts’ average forecast of 3.51%. Real internal growth, a measure primarily reflecting changes in sales volumes, was 1.5%.

The figures suggest that Nestlé is restructuring from a position of continued group-level growth rather than responding solely to an immediate sales contraction. At the same time, the difference between organic growth and real internal growth shows why management remains focused on the quality and composition of performance across the portfolio. The company is directing attention toward categories and brands that it believes can deliver more consistent growth and stronger returns.

For the bottled water market, the key question will be how Peranel allocates capital to Perrier, S.Pellegrino and the rest of the portfolio while dealing with demand and legal pressures. Platinum Equity gains an equal role in a business valued at €4.9 billion, while Nestlé secures about €3 billion in cash and preserves an economic interest in any recovery. The arrangement signals that large food and beverage groups can use joint ventures, rather than full exits, to release capital and restructure businesses whose brands remain strategically valuable.