Nestl\u00e9 is to sell half of its waters business to the US private-equity firm Platinum Equity under a joint-venture agreement. <\/p>\n
In a statement today (23 July), issued alongside Nestl\u00e9’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. <\/p>\n
Nestl\u00e9 said the Peranel venture is “designed to establish a dedicated player with strengthened focus to drive growth in a dynamic category”. <\/p>\n
The Swiss food and drinks giant said it expects to gain \u20ac3bn ($3.42bn) in cash proceeds from the transaction. The deal gives Peranel an enterprise value of \u20ac4.9bn. <\/p>\n
The venture will house Nestl\u00e9’s water brands such as San Pellgrino, Source Perrier, Acqua Panna and Nestl\u00e9 Pure Life, as well as “other leading local brands”. <\/p>\n
“Peranel will have full flexibility to invest in its brands and pursue growth opportunities,” Nestl\u00e9 said. <\/p>\n
The move follows multiple reports<\/a> this year that had suggested talks had been held between the listed group and various private-equity players around the sale of a stake in the waters business. <\/p>\n “By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility,” Nestl\u00e9’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.” <\/p>\n The transaction, which is “subject to employee consultation processes and applicable regulatory approvals”, is expected to close in the first half of next year. <\/p>\n