PAI Partners, a long-time private equity partner of Nestle, has withdrawn its bid for a stake in Nestle's water business. This unit includes internationally recognized brands such as Perrier and S.Pellegrino. PAI had previously been considered a leading contender due to its existing ties with Nestle, including a jointly owned ice cream venture. KKR also reportedly dropped out of the bidding process in recent weeks, further narrowing the field of potential buyers.
With PAI and KKR out of the running, the sale process for a potential 50% stake in Nestle’s water business now appears to be primarily contested by Clayton Dubilier & Rice (CD&R) and Platinum Equity. These two buyout firms are understood to be the remaining parties in contention for the acquisition. The business carries a reported price tag of approximately $5.8 billion (€5 billion), which Nestle has been seeking. Both CD&R and Platinum have strong track records as active consumer investors, suggesting continued confidence in the asset's long-term value despite potential hurdles.
Pricing and restrictive conditions on data access for financing banks have reportedly been sticking points in the process, which is common in large corporate carve-outs. However, the continued engagement of well-capitalized sponsors like CD&R and Platinum Equity highlights their belief in the underlying value of Nestle's water division. Neither Nestle, PAI Partners, nor KKR have officially commented on the recent developments in the sale process. Similarly, CD&R and Platinum Equity have not yet responded to requests for comment regarding their ongoing bids.
