Nestlé nears sale of 50% stake in Perrier and San Pellegrino unit to Platinum Equity at €5bn valuation
The Swiss food giant is racing to finalise a joint venture with the US private equity firm ahead of its half-year results on Thursday, valuing the European water brands at close to €5 billion.
The deal
Nestlé is on the verge of selling a roughly 50% stake in its European water business to US private equity group Platinum Equity, the Financial Times reported on Wednesday, citing people close to the talks. The transaction would be structured as a joint venture and values the unit, home to brands such as Perrier and San Pellegrino, at close to €5 billion. Some Swiss media outlets put the figure at around 5 billion francs. The two sides are aiming to sign an agreement before Nestlé publishes its half-year results on Thursday.
A long road to sale
The deal would conclude a drawn-out disposal process. Nestlé first signalled its intention to offload the water brands in 2024, separated the division from the rest of the company in 2025, and confirmed early this year that a sale was under way. Platinum Equity, led by billionaire founder Tom Gores, emerged as the sole bidder after rival groups including KKR, CD&R and PAI Partners withdrew from the auction.
- Nestlé first indicates intention to offload its European water brands.
- The water division is separated organisationally from the rest of the group.
- Nestlé confirms a sale process is under way.
- Financial Times reports Platinum Equity is nearing a deal for a 50% stake.
- Nestlé half-year results expected; parties aim to sign before the update.
Legal headwinds
The sale has been complicated by legal troubles in France. Earlier this year, French authorities raided two bottling sites as part of a fraud investigation. In 2024, a media probe revealed that about a third of mineral water sold in the country had been illegally treated, and Nestlé admitted to using prohibited purification methods.
It's not a straightforward deal.
Last year the water segment generated roughly 3.5 billion francs in revenue, accounting for about 3.5% of Nestlé's total group sales.
Strategic overhaul
The partial exit is part of a broader restructuring under new chief executive Philipp Navratil, who took over in September 2025, and chairman Pablo Isla, the former boss of Inditex. Navratil is streamlining the portfolio to focus on fewer categories. Nestlé is also looking for a buyer for parts of its mainstream vitamins and supplements business. The company has previously partnered with private equity on joint ventures, including its ice cream unit Froneri with PAI Partners and a frozen pizza venture with the same firm.
Market reaction
Nestlé shares rose 3% on the Zurich exchange on Wednesday. The stock is up 14% since the start of 2026 and 12% over the past twelve months, though it remains 25% lower over a five-year horizon. Neither Nestlé nor Platinum Equity commented on the report.
- Today
- 3 %
- YTD 2026
- 14 %
- 12-month
- 12 %
- 5-year
- -25 %
