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FinanceNestlé sells half of waters business in $3.4B deal, forms JV Peranel
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Nestlé has agreed to sell half of its waters business to private equity firm Platinum Equity in a $3.4 billion deal, creating a new 50:50 joint venture called Peranel. The new company will be headquartered in Paris and include over 30 brands such as S.Pellegrino, Perrier, Essentia, and Nestlé Pure Life. The transaction, expected to close in the first half of 2027, gives Peranel an enterprise value of about $5.6 billion. The move is part of Nestlé CEO Philipp Navratil's strategy to shed underperforming assets and focus on growth areas like frozen foods. Nestlé first announced plans to separate its waters business in 2024 as part of a cost-cutting initiative. The waters and premium beverage segment had been struggling and accounted for only about 4% of Nestlé's overall business. Nestlé reported a 2.5% decrease in first-half sales to approximately $52.6 billion.
Source report
By: Laurel Deppen Source: Food Dive
Dive Brief
- Nestlé has sold half of its waters business to private equity firm Platinum Equity in a $3.4 billion deal, creating a new premium beverage company called Peranel.
- Peranel is a 50:50 joint venture between Nestlé and Platinum Equity, encompassing more than 30 brands, including S.Pellegrino, Source Perrier, Essentia, Nestlé Pure Life, and other local water brands.
- The deal will make Peranel a fully independent company headquartered in Paris, with "full flexibility to invest in brands and pursue growth opportunities," Nestlé stated.
Dive Insight
The sale represents the latest move by Nestlé CEO Philipp Navratil to aggressively review the food giant's portfolio, shedding underperforming assets while pursuing growth opportunities in areas such as frozen foods.
Nestlé first announced plans to separate its waters and premium beverages into a standalone business in 2024, as part of a broader initiative to cut $2.8 billion in costs by 2027.
Under new CEO Philipp Navratil, Nestlé has further pruned its portfolio. Earlier this year, the company sold:
- Blue Bottle Coffee to Centurium Capital
- The remainder of its ice cream business to Froneri
Nestlé is also exploring the sale of its mainstream vitamins, minerals, and supplements business.
The new transaction, expected to close in the first half of 2027, gives Peranel an enterprise value of €4.9 billion (approximately $5.6 billion). The company will be headquartered in Paris and led by Muriel Lienau, currently CEO of the business.
"By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility," said Philipp Navratil, Nestlé CEO. "Through additional focus, it will be well equipped to drive its long-term growth ambitions by strengthening this unique portfolio of international and local brands, with continued investments in innovation, premiumization, operational excellence and sustainability."
The waters and premium beverage business accounted for only about 4% of Nestlé's total business and has faced challenges for several years.
On Thursday, Nestlé reported H1 sales of 43 billion Swiss francs (approximately $52.6 billion), marking a 2.5% decrease year over year.
Recommended Reading
- Why Nestlé is betting on 'huge opportunity' in frozen food
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Yahoo FinanceWestern
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Nestlé to sell half of waters business in $3.4B deal