Nestlé SA is moving forward with the sale of a stake in its €5 billion ($5.8 billion) water business, which encompasses well-known brands such as Perrier and S.Pellegrino. The Swiss food company, working with Rothschild & Co., began asking for first-round bids in January 2026. Deutsche Bank was later added to advise on the potential 50% stake sale, which could be valued at around €5 billion ($5.9 billion).
First-round bids for the stake sale were due by March 10, 2026, with interested private equity firms reportedly including Apollo, Butterfly, CD&R, KKR, and PAI. Deutsche Bank has lined up an indicative financing package of approximately €2.9 billion for potential buyers, representing about 5.75x leverage based on an estimated EBITDA of €500 million for the water unit. This loan-only debt package is expected to be evenly split between euros and U.S. dollars due to the international nature of the business.
Nestlé had announced in November 2024 that its water and premium beverages activities would become a standalone global business as of January 1, 2025, under the leadership of Muriel Lienau. This division includes brands like San Pellegrino, Perrier, and Acqua Panna. The structure of the eventual stake sale is anticipated to mirror PAI's 2016 joint venture with Nestlé for Froneri, which involved merging PAI's R&R Ice Cream with Nestlé’s European ice cream business.
