Nestlé nears deal to sell stake in €5bn Perrier unit

By the Editorial Team · Thursday, July 23, 2026

Nestlé is close to finalizing a deal to sell about half of its European bottled water business, including San Pellegrino and Perrier, to private equity firm Platinum Equity for nearly €5 billion. This joint venture reflects Nestlé’s strategic shift under new leadership to focus on core categories like coffee and pet food, despite recent legal and regulatory challenges affecting its water division.

Nestlé is nearing an agreement to sell a roughly 50 percent stake in its European bottled water business to private equity firm Platinum Equity, according to sources familiar with the matter. The transaction would value the unit, which includes brands such as San Pellegrino and Perrier, at nearly €5 billion.

The two parties have been working to finalize terms ahead of Nestlé’s upcoming half-year trading update, marking the culmination of a lengthy and complex sale process. Nestlé initially announced plans to divest the water brands in 2024 and formally separated the division from the rest of the company in 2025. Earlier this year, the Swiss food and beverage giant confirmed the sale process was underway.

Platinum Equity, led by billionaire founder Tom Gores, emerged as the sole bidder after several rival groups, including KKR, CD&R, and PAI Partners, withdrew from the auction. The deal is expected to be structured as a joint venture between Nestlé and Platinum.

The sale has been complicated by a series of legal and regulatory challenges. Earlier this year, French authorities conducted raids at two of Nestlé’s bottling plants as part of a fraud investigation. The water division also faced controversy in 2024 when a media report revealed that about one-third of mineral water sold in France had been illegally treated, with Nestlé acknowledging the use of prohibited treatment methods.

Despite these issues, the water business remains a notable part of Nestlé’s portfolio, accounting for around 3.5 percent of group sales in the previous year. The move to reduce its ownership stake aligns with a broader strategic overhaul under new CEO Philipp Navratil and Chair Pablo Isla. Both executives are focused on streamlining Nestlé’s operations to concentrate on fewer product categories, such as coffee and pet food.

Platinum Equity, which manages approximately $48 billion in assets, has a history of investing in consumer brands, including European biscuit manufacturer Biscuit International and dairy company Horizon Organic. Neither Nestlé nor Platinum Equity provided comments on the ongoing negotiations.

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