Private equity firms, including PAI Partners and Bain Capital, are evaluating potential bids for Nestlé’s water business, which could be valued at €5bn ($5.38bn) or more, according to a report by Reuters.
Clayton Dubilier & Rice (CD&R) and KKR have reportedly also been assessing the opportunity.
Nestlé announced in November that it would carve out its CHF3.3bn ($3.68bn) water division into a standalone global entity by 1 January 2025. The company signalled openness to potential partnerships and deals as part of its strategic repositioning. Nestlé may opt to retain a stake in the business as part of any transaction, the report added.
The water business has long attracted interest from both private equity and strategic buyers, Nestlé’s Head of Group Strategy and Business Development, Sanjay Bahadur, told Reuters last year.
In parallel, the Swiss consumer goods giant is ramping up advertising and marketing while targeting cost reductions of at least $2.8bn by 2027. The move comes amid growing competition from lower-cost, heavily marketed, and innovative brands eroding its market share.
Nestlé’s restructuring echoes a broader trend in the sector. Rival Unilever, which has faced similar pressures over brand complexity, announced in March plans to spin off its ice cream division and signalled readiness to divest underperforming assets.
