Nestlé nears sale of half its water business to Platinum Equity

Nestlé is close to finalizing the sale of approximately 50% of its European water business to private equity firm Platinum Equity, in a deal that would value the resulting joint venture at nearly €5 billion ($5.71 billion), according to the Financial Times.1450 AM 99.7 FM WHTC | Holland+2

The two sides are aiming to reach an agreement before Nestlé reports its first-half earnings on Thursday, July 23, the report said. Nestlé declined to comment on the deal.NeoFeed+1

A Long Road to a Single Bidder

The transaction caps a drawn-out auction process that began in earnest in early 2026, when Nestlé appointed Rothschild & Co. as its financial adviser and invited first-round bids. The water portfolio includes premium brands such as Perrier, San Pellegrino, and Acqua Panna.Food Business Africa Magazine - Africa's No.1 Food & Beverage Industry Magazine+3

Initial interest came from several major buyout firms, including KKR ↘ 1.63%, PAI Partners, Clayton Dubilier & Rice, and Blackstone ↘ 1.07%. The field narrowed steadily over the spring: KKR and PAI dropped out by early June, and CD&R withdrew later that month, leaving Platinum Equity — the firm backed by billionaire Tom Gores — as the sole remaining bidder.The Investor Standard+4

Strategic Reshaping Under New Leadership

The divestiture is part of a broader portfolio overhaul under CEO Laurent Freixe, who has sought to sharpen Nestlé's focus on higher-growth categories and improve profitability. The company said earlier this year that it expected the waters business to be deconsolidated from its accounts by 2027.FoodManufacture.co.uk+3

Banks had prepared between €2 billion and €3 billion in leveraged debt financing to support the transaction, structured as a combination of euro- and dollar-denominated loans. The deal would be structured as a joint venture, with Nestlé retaining the other half of the business.Nestlé's Premium Water Brands Attract Major Private Equity Interest+3

What Comes Next

If finalized alongside Thursday's earnings announcement, the agreement would mark one of the largest European consumer-goods divestitures of the year and conclude more than six months of negotiations. Whether the deal closes remains subject to final terms and regulatory approvals.Investing.com