Platinum Equity emerges as sole bidder for Nestlé water business
Platinum Equity has emerged as the final remaining bidder for Nestlé’s water division after rival bidders withdrew from the process.
According to Bloomberg, Platinum Equity has emerged as the sole remaining bidder for a 50% stake in Nestlé's water division. This follows the withdrawal of other potential acquirers, including PAI Partners and Clayton Dubilier & Rice. Negotiations are currently underway, though the completion of a transaction is not yet certain. The water division includes bottled water brands such as Perrier and S.Pellegrino.
Nestlé initiated this sale as part of a broader turnaround strategy led by Chief Executive Philipp Navratil, focusing the company's efforts on core categories. The process has reportedly encountered complications concerning financing requirements and valuation expectations. Nestlé has been seeking a valuation of approximately €5 billion for the business.
To support a potential transaction, debt financing ranging from €2 billion to €3 billion has been explored.
Nestlé announced its intention to separate the water business in late 2024, later opting to pursue a full sale. The division has faced operational and market challenges in recent years amid weaker consumer demand and increased scrutiny regarding treatment practices within the bottled water sector.