Food giant Nestlé has initiated the sale process for its water division, which includes brands such as Vittel, Perrier, and San Pellegrino. That division is estimated to be worth around €5 billion.
Interest from investment funds
The multinational had already announced plans to spin off its water division at the end of 2024. Now, an initial bidding round has reportedly begun, with investment funds such as PAI Partners, Blackstone, KKR, and Bain Capital expected to show particular interest. Investment bank Rothschild is said to be overseeing the process, according to sources familiar with the matter who spoke to Bloomberg.
Under its new CEO Philipp Navratil, the multinational is conducting a thorough evaluation of its entire business, which involves the sale of non-core activities and a restructuring plan that will cost as many as 16,000 jobs over the next two years. Growth prospects in water are limited, margins are low, and a scandal involving bottled water fraud in France has not done the company any favors either. A sale would free up resources to invest in growth categories.
