Nestlé is close to finalizing the sale of approximately 50% of its European water business — owner of brands such as Perrier and San Pellegrino — to Platinum Equity, in a deal that values the business at approximately €5 billion, reports the Financial Times.
According to sources close to the negotiations, the goal is to finalize the terms before the company's semi-annual earnings report is released, scheduled for Thursday, July 23.
The transaction is expected to be structured as a joint venture and concludes a long and turbulent process. Platinum Equity, owned by billionaire Tom Gores, became the sole interested party after rivals such as KKR, CD&R, and PAI Partners withdrew.
The asset manager, which manages approximately US$48 billion, has previously invested in consumer assets such as Biscuit International and Horizon Organic.
The sale comes amid a period of significant strain for Nestlé's water division. In 2024, an investigation in France revealed the use of prohibited treatments in some of the mineral water sold in the country, leading to search and seizure operations at bottling plants and increasing regulatory pressure. The unit represents approximately 3.5% of the company's global sales.
The divestment is part of the restructuring led by the new CEO, Philipp Navratil, and the chairman of the board, Pablo Isla, formerly of Inditex.
Nestlé has been simplifying its structure to focus on fewer categories and is also seeking buyers for its mass-market vitamin business.
The Swiss giant already has a history of partnerships with private equity firms in joint ventures, such as Froneri (ice cream) and its European frozen pizza unit, both with PAI Partners.
In 2021, it sold its North American water business to One Rock Capital for US$4.3 billion.
Nestlé and Platinum Equity have not commented on the matter.
