Nestlé has moved forward in its planned divestment of a stake in its European water division, with several private equity firms, including Dubilier & Rice, KKR and PAI Partners advancing to the next round of the process, according to a report by the Financial Times.
The buyout groups are understood to be among those shortlisted for a potential acquisition of a 50% interest in the business, with the unit potentially being valued at approximately €5bn. Platinum Equity has also expressed interest in the process.
The carve-out includes well-known premium water brands such as San Pellegrino, Perrier and Acqua Panna, and forms part of a broader portfolio review by the Swiss consumer goods group.
The potential transaction comes as Nestlé undertakes a strategic reset under chief executive Philipp Navratil, who has initiated a wide-ranging restructuring programme aimed at improving performance and sharpening the company’s focus. The group has reorganised its operations around core categories including coffee, petcare, nutrition, and food & snacks.
As part of this repositioning, Nestlé has increasingly turned to private equity buyers for non-core disposals. This includes previous transactions involving its ice cream operations with Froneri, a business it co-owns with PAI.
Navratil has also announced significant cost-cutting measures, including a planned reduction in headcount, alongside ongoing efforts to divest additional assets such as parts of its vitamins and supplements portfolio.
