Nestlé sells half water and drinks business to US private equity

By the Editorial Team · Friday, July 24, 2026

Nestlé has agreed to sell a 50 percent stake in its water and premium beverages business to Platinum Equity for €3.32 billion, forming a joint venture called Peranel that will manage over 30 brands including Perrier and San Pellegrino. The deal aims to create a more focused and agile company to accelerate growth and innovation in the competitive drinks market, with the transaction expected to close in the first half of next year pending regulatory approvals.

Nestlé has agreed to sell a 50 percent stake in its water and premium beverages business to US private equity firm Platinum Equity for €3.32 billion, creating a joint venture named Peranel. The new entity will manage more than 30 brands, including Perrier and San Pellegrino, with products distributed across 120 countries.

The Swiss food conglomerate said the transaction is designed to establish a focused player capable of driving growth in the competitive water and drinks sector. Nestlé Chief Executive Philipp Navratil stated that the partnership with Platinum Equity would provide Peranel with increased agility and allow for a stronger execution of its strategic objectives. He highlighted plans to invest in innovation, premiumisation, operational efficiency, and sustainability to support the long-term development of the portfolio, which includes both global and local brands.

Platinum Equity, founded by billionaire Tom Gores in 1995, is a global investment firm specializing in complex acquisitions, corporate carve-outs, and operational improvements. Its portfolio includes companies such as SVP Worldwide, Club Car, and Pelican Products.

Nestlé, established in 1867 in Vevey, Switzerland, by German-born pharmacist Henri Nestlé, initially gained recognition for its infant food, Farine Lactée. The company merged with the Anglo-Swiss Condensed Milk Company in 1905 and has since evolved into one of the world’s largest food and beverage manufacturers.

The deal is expected to close in the first half of next year, subject to regulatory approvals and a staff consultation process. The announcement follows a challenging first half for Nestlé, which reported a 31 percent decline in net profits to CHF3.5 billion. The drop was attributed to increased restructuring expenses and write-downs on assets held for sale. Additionally, net debt rose to CHF56.3 billion by the end of June, up from CHF51.4 billion at the close of 2025.

Earlier this year, Navratil outlined a company turnaround plan focused on streamlining operations around four core divisions, emphasizing cost savings and innovation. He assumed leadership last September, following the departure of his predecessor Laurent Freixe amid an internal investigation into a breach of the company's code of conduct related to an undisclosed romantic relationship with a direct subordinate.

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