Nestlé to spin off mineral water business into joint venture

Nestlé is spinning off half of its global mineral water business into a joint venture with American private equity firm Platinum Equity, marking a significant shift for the food and beverage giant.

The new entity, to be named Peranel, will manage a portfolio of 120 brands. This includes prominent international names such as San Pellegrino from Italy, Perrier from France, and Henniez from Switzerland, alongside others like Nestlé Pure Life. The move follows long-standing speculation about Nestlé's strategic review of its water brands.

Nestlé announced the deal on Thursday morning, confirming the partnership that will see Platinum Equity acquire a 50% stake. The transaction is valued at 4.5 billion Swiss francs. Nestlé is expected to receive 2.8 billion Swiss francs from the deal, indicating the overall valuation of the divested portion of its water business.

This strategic move allows Nestlé to streamline its operations and focus on other core areas, while leveraging Platinum Equity's expertise in managing and growing consumer brands. The future of the iconic water brands under the new joint venture structure remains to be seen, but the significant financial transaction underscores the value Nestlé places on its mineral water portfolio.