The food and drinks group, Nestle, has agreed to buy the mineral water concern, Powwow, from the Kong Kong-based conglomerate, Hutchison Whampoa, for €560m (US$521m).
Powwow is a Europe-based home and office delivery water business founded in 1998 which now operates in Germany, France, the Netherlands, the UK, Denmark, Italy and Portugal, employing 1,500 people. The company recorded sales of around €120m in 2002.
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Nestle said the acquisition of Powwow would “provide a strong platform” in the fast-growing home and delivery water business. “The HOD sector in Europe represents only 3% of the water business but growth perspectives in the coming years are very attractive, about 15% to 20% per year,” Nestle said.
Hutchison said that its AS Watson subsidiary was selling the water company in order to focus on its fast growing European health and beauty retail activities. However, the company will retain its Asian beverage activities.
“Whilst AS Watson has decided to sell the Powwow business to focus on the expansion of its health and beauty retail businesses in Europe, it will continue its Asian water and beverage businesses,” said AS Watson’s managing director Ian Wade.
Hutchison Whampoa said Tuesday it will book a profit of €230m this year from the sale of Powwow. The deal remains subject to certain regulatory approvals.
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