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

By the Editorial Team · Thursday, July 23, 2026

Nestlé is nearing a deal to sell about a 50 percent stake in its European bottled water business, including brands like San Pellegrino and Perrier, to private equity firm Platinum Equity in a joint venture valued at around €5 billion. This move is part of Nestlé's strategic shift under new leadership to streamline operations by focusing on core categories amid legal challenges and operational complexities faced by the water division.

Nestlé is reportedly close to finalizing a deal to sell a roughly 50 percent stake in its European bottled water business to private equity firm Platinum Equity, in a transaction valuing the unit near €5 billion. The deal, expected to be structured as a joint venture, involves brands such as San Pellegrino and Perrier. Sources with direct knowledge of the matter say discussions are advancing ahead of Nestlé’s half-year financial update.

The proposed sale would conclude a lengthy process that began when Nestlé announced in 2024 its intention to divest the water unit. The company separated the business from its core operations in 2025 and confirmed this year that it had initiated a sale process. Platinum Equity, led by billionaire Tom Gores, emerged as the sole bidder following the withdrawal of other interested parties, including KKR, CD&R, and PAI Partners.

The transaction has faced complexities due in part to ongoing legal challenges. Earlier this year, French authorities conducted raids at two of Nestlé’s bottling sites amid a fraud investigation. Additionally, a media report in 2024 revealed that a significant portion of mineral water sold in France had been illegally treated, leading Nestlé to acknowledge the use of prohibited processing methods. Despite these issues, the water division represented approximately 3.5 percent of Nestlé’s overall group sales last year.

An insider familiar with the negotiations described the sale as “not a straightforward deal,” highlighting the challenges Nestlé has encountered throughout the process. Platinum Equity manages around $48 billion in assets and has a diverse portfolio that includes investments in consumer goods companies such as Biscuit International and Horizon Organic.

Nestlé’s decision to reduce its exposure to the water business aligns with a broader strategic refocus under its new leadership. CEO Philipp Navratil and chair Pablo Isla, former CEO of fast-fashion group Inditex, are overseeing a simplification of the company’s structure with an emphasis on fewer core categories, including coffee and pet food.

Neither Nestlé nor Platinum Equity has publicly commented on the potential transaction.

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