Nestlé is to sell half of its waters business to the US private-equity firm Platinum Equity under a joint-venture agreement.
In a statement today (23 July), issued alongside Nestlé's first-half results, the Perrier brand owner said it would create a jointly split partnership for its waters and "premium beverages" business with the investor.
Nestlé said the Peranel venture is "designed to establish a dedicated player with strengthened focus to drive growth in a dynamic category".
The Swiss food and drinks giant said it expects to gain €3bn ($3.42bn) in cash proceeds from the transaction. The deal gives Peranel an enterprise value of €4.9bn.
The venture will house Nestlé's water brands such as San Pellegrino, Source Perrier, Acqua Panna and Nestlé Pure Life, as well as "other leading local brands".
"Peranel will have full flexibility to invest in its brands and pursue growth opportunities," Nestlé said.
The move follows multiple reports this year that had suggested talks had been held between the listed group and various private-equity players on the sale of a stake in the waters business.
"By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility," Nestlé's CEO Philipp Navratil said today. "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, premiumisation, operational excellence and sustainability."
The transaction, which is "subject to employee consultation processes and applicable regulatory approvals", is expected to close in the first half of next year.
Nestlé revealed a plan to separate its water and premium beverages operations into a standalone business in 2024. At a capital markets day in November that year, the group said the new management of the drinks assets would “evaluate the strategy” for the business, including “exploring partnership opportunities”.
The existing Nestlé Waters and Premium Beverages entity was set up in January last year, headed up by CEO Muriel Lienau. Nestlé said today she will continue to lead the Paris-headquartered business.
Louis Samson, the co-president at Platinum Equity, said: "We bring unique energy and focus as well as business and operational expertise to the table. Combined with Nestlé’s and Peranel’s world-class product development, execution and marketing capabilities, our joint venture creates a powerful partnership and a very strong team.
"We will leverage our extensive experience in establishing and supporting stand-alone companies to create long-term value."
In the first half of 2026, Nestlé's waters and premium beverages unit booked a 5.1% rise in sales revenue on an organic basis to SFr1.78bn ($2.21bn).
Real internal growth (RIG), a key strategic metric for Nestlé that strips out the effect of pricing from volumes, climbed 1.6%. Pricing was 3.5%.
The business posted SFr1.02bn in sales in the second quarter, recording 6.6% organic growth and RIG of 2.2%.
For the first half of the year, the division generated what Nestlé calls an "underlying trading operating profit" margin of 9.5%. The company as a whole generated a margin of 16.4%.
