What does Nestlé water unit sale mean summary?
- Nestlé has reportedly launched a sale process for its water unit
- The business includes Perrier and San Pellegrino valued near €5bn
- Private equity firms are said to be preparing initial indicative bids
- Financing between €2bn and €3bn is reportedly being arranged by lenders
- The sale follows Nestlé leadership changes and ongoing strategic portfolio assessments
Food and beverage giant Nestlé has officially launched the sale of a stake in its water business. That’s according to media outlet Bloomberg.
The Swiss major is said to be seeking first-round bids for the unit, which houses brands including Perrier and San Pellegrino, this month.
People “familiar with the matter” say the business is valued at around €5bn, and that Nestlé is working with Rothschild on the process.
Lenders are said to be preparing between €2bn and €3bn of acquisition financing, expected to be split between euro- and dollar-denominated leveraged loans.
Private equity firms including PAI Partners, Blackstone, KKR, Bain Capital, and Clayton Dubilier & Rice have previously expressed interest in the asset.
Discussions over the size and timing of the sale remain ongoing.
Nestlé announced plans to separate the water division back in 2024, a move reportedly revived following the appointment of Philipp Navratil as CEO.
What’s next for Nestlé Waters?
If confirmed, the sale marks a pivotal moment in Nestlé’s ongoing portfolio reshaping.
Offloading a significant share of its water division could free up capital for higher‑growth categories, sharpen strategic focus, and streamline operations at a time when the company is under pressure to demonstrate agility and deliver stronger returns.
It may also create opportunities to re‑evaluate the long‑term positioning of its remaining hydration brands, deepen sustainability commitments, or redirect investment toward areas where the company sees greater future value.
At the same time, the move is likely to attract intense attention from the market. A €5bn asset spanning iconic names like Perrier and San Pellegrino presents substantial room for transformation under new ownership – whether through brand revitalisation, operational optimisation, or packaging and sustainability innovation.
And for Nestlé, any deal will set the tone for how aggressively it intends to reshape its broader beverages portfolio under Philipp Navratil’s leadership.
As discussions progress, all eyes will be on the bidders, the valuation they’re willing to place on the business, and what the divestment signals about Nestlé’s strategic trajectory going forward. We’ll be watching closely.
Nestlé has declined to comment on reports.
