Nestle Sells Half of Waters Unit to Platinum Equity in $3.4 Billion Joint-Venture Deal

Nestlé has agreed to sell a 50% stake in its waters business, which includes the Perrier and Vittel brands, to private equity firm Platinum Equity in a deal valued at $3.4 billion. The transaction creates a new joint venture called Peranel, with an enterprise value of $5.6 billion, according to a statement from Platinum Equity.

The deal affects Nestlé’s global water division, which has faced declining sales as consumers shift away from bottled water due to environmental concerns. The joint venture will operate as an independent entity, with Nestlé retaining the other half of the business. Platinum Equity will manage day-to-day operations, while Nestlé will continue to hold a significant stake.

The move matters because it marks a strategic shift for Nestlé, which has been focusing on high-growth categories like coffee and pet care. By selling a stake in its water unit, Nestlé aims to streamline its portfolio and improve profitability. The deal is expected to close in the first half of 2025, subject to regulatory approvals.

Specific figures include the $3.4 billion sale price for the 50% stake, the $5.6 billion enterprise value of Peranel, and the inclusion of brands such as Perrier, Vittel, and San Pellegrino. The transaction was first reported by The Wall Street Journal and confirmed by Platinum Equity.

Background: Nestlé had been exploring options for its water business since 2023, including a potential sale or spin-off, as part of a broader portfolio review. The company previously sold its North American water brands, including Poland Spring and Deer Park, to private equity firms in 2021 for $4.3 billion.

Next steps: The joint venture will seek to expand its premium beverage offerings and improve operational efficiency. Nestlé will use proceeds from the deal to invest in faster-growing segments, such as coffee and health sciences. Platinum Equity plans to support Peranel’s growth through acquisitions and operational improvements.