Nestlé reportedly launches sale process for €5B water business
Key takeaways
- Nestlé reportedly sought first-round bids this month for a water business valued at €5 billion (US$5.2 billion).
- Private equity firms, including Blackstone, KKR, and Bain Capital, have reportedly expressed interest in the unit.
- The sale follows years of controversy over illegal water treatment methods at French production sites.
Nestlé has begun a formal sale process for its water and premium beverages business, with potential buyers being asked to submit first-round bids this month, according to Bloomberg.
The business — which includes Perrier, S.Pellegrino, Acqua Panna, Vittel and Contrex — is valued at around €5 billion (US$5.2 billion). Banks are preparing €2–3 billion (US$2.1–3.1 billion) in debt financing to back a potential acquisition, with Rothschild & Co. advising Nestlé on the sale.
Private equity firms, including PAI Partners, Blackstone, KKR, Bain Capital, and Clayton Dubilier & Rice, have expressed interest in the asset, according to sources given to Bloomberg.
The Swiss food giant separated its water and premium beverages activities into a standalone global business on January 1, 2025, under the leadership of Muriel Lienau, former head of Nestlé Waters Europe. At the time, then-CEO Laurent Freixe said the company would explore “partnership opportunities to enable Nestlé’s iconic brands and growth platforms to achieve their full potential.”
The water business has delivered solid recent performance. In its nine-month 2025 results, Nestlé reported organic growth of 4.4% for the unit, with market share gains led by S.Pellegrino. “Growth was driven by the Maison Perrier and Sanpellegrino beverage platforms with continued innovation, as well as solid sales momentum for out-of-home channels,” the company stated.
However, the business remains a small part of Nestlé’s overall portfolio and has been dogged by regulatory controversy in France.
Regulatory shadow
A French Senate inquiry published in May 2025 found that the government had concealed “illegal practices” by Nestlé Waters. The six-month investigation, involving 73 hearings with ministers, business leaders, and health officials, focused on the company’s use of prohibited water treatment methods, including ultraviolet filtration and activated carbon filters at its Perrier, Vittel, Hépar, and Contrex facilities.
In 2024, Nestlé Waters admitted using banned treatments on its mineral waters and paid a €2 million (US$2.3 million) fine to settle criminal probes without admitting guilt. France’s fraud control agency estimated the total cost of the deception at over €3 billion (US$3.1 billion).
A Nestlé spokesperson responded to the senate report by stating that “food safety is the company’s primary goal” and that “all its natural mineral water products on the market have always been and remain safe to drink.”
In November 2025, a French court rejected a complaint from consumer advocacy group UFC-Que Choisir, which had sought to prevent Perrier from marketing its sparkling water as “natural mineral water” due to its use of microfiltration processes. The Nanterre court found no established health risk and ordered UFC-Que Choisir to pay €5,000 (US$5,800) to Nestlé.
However, UFC-Que Choisir has filed two additional legal complaints against Nestlé, meaning the company still faces litigation stemming from the scandal.
Strategic shift
The potential sale marks the latest step in Nestlé’s strategic transformation under CEO Philipp Navratil, who took over in September 2025. At its November 2024 Capital Markets Day, Nestlé announced plans to deliver at least CHF 2.5 billion (US$3.1 billion) in cost savings by the end of 2027, while increasing investment in advertising and marketing.
The company previously sold its North American regional spring water brands, purified water business, and beverage delivery service to One Rock Capital Partners for US$4.3 billion in 2021, retaining only its international premium brands.
Nestlé has declined to comment.
