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Time of India
09-05-2025
- Business
- Time of India
Nestle lines up Rothschild for water unit sale, sources say
HighlightsNestle has engaged Rothschild & Co. to assist in the sale of its water division as part of a strategy to concentrate on its most significant brands under new CEO Laurent Freixe. The water division, which includes well-known brands such as Perrier and is estimated to be valued at over 5 billion euros ($5.6 billion), with private equity firms like Platinum Equity, Blackstone, and One Rock Capital Partners expressing early interest. Challenges in the water division arise from capacity issues, particularly with the Perrier brand, and ongoing regulatory compliance concerns in France regarding water production practices. Nestle has hired Rothschild to advise on the sale of its water division later this year, four people familiar with the matter told Reuters, as the Swiss food giant looks to refocus on bigger brands. Under new CEO Laurent Freixe, Nestle has been trying to narrow its focus to roughly 30 of its 2,000 brands, prioritising labels including Kit-Kat chocolate wafer bars, Nescafe coffee, NAN infant formula and Maggi noodles and seasonings. In November, the group announced it would carve out its water business into a standalone global unit from January 1, and was open to partnerships and deals. The division has been struggling with capacity issues, the company has said. Nestle is aiming to keep a stake in the water business that includes brands such as Perrier and the sources said, who spoke on condition of anonymity because the matter is private. The unit could be valued more than 5 billion euros ($5.6 billion), one of the people added. Private equity firms including Platinum Equity, Blackstone and One Rock Capital Partners have held early stage conversations about possible offers for the business, two of the people said. Other interested parties include PAI Partners and CD&R, one of these people and a fourth person added. Conversations with potential bidders are ongoing ahead of a formal process later this year, the people said, cautioning that no deal is guaranteed. Spokespeople for Rothschild, Nestle, PAI, CD&R and Blackstone declined to comment. One Rock and Platinum did not respond to requests for comment. Nestle's water business has attracted interest for decades, including from private equity and strategic buyers, Sanjay Bahadur, head of group strategy and business development, told Reuters in an interview in November. "The main struggle is at Perrier, the rest of the brands are performing well," Vontobel analyst Jean-Philippe Bertschy said. "They have had issues at several (water) sources, and there is an ongoing battle between the French authorities and Nestle." Nestle has previously said its mineral water products are safe to drink but that in the interest of food safety "practices at some of our waters production sites may not be in line with the applicable regulatory framework". It has said that all water production at its locations in France is currently compliant with French regulations. Revenue at the water division increased by 2.9 per cent to 722 million Swiss francs ($874 million) in the first quarter of the year, accounting for less than 4 per cent of Nestle's total revenue, according to its latest results. Bottled water is a difficult category amid water scarcity concerns and weak industry sales since the COVID-19 pandemic. Nestle in 2021 sold its water business in North America for $4.3 billion.
Reuters
08-05-2025
- Business
- Reuters
Nestle lines up Rothschild for water unit sale, sources say
LONDON, May 8 (Reuters) - Nestle (NESN.S), opens new tab has hired Rothschild to advise on the sale of its water division later this year, four people familiar with the matter told Reuters, as the Swiss food giant looks to refocus on bigger brands. Under new CEO Laurent Freixe, Nestle has been trying to narrow its focus to roughly 30 of its 2,000 brands, prioritising labels including Kit-Kat chocolate wafer bars, Nescafe coffee, NAN infant formula and Maggi noodles and seasonings. In November, the group announced it would carve out its water business into a standalone global unit from January 1, and was open to partnerships and deals. The division has been struggling with capacity issues, the company has said. Nestle is aiming to keep a stake in the water business that includes brands such as Perrier and the sources said, who spoke on condition of anonymity because the matter is private. The unit could be valued more than 5 billion euros ($5.6 billion), one of the people added. Private equity firms including Platinum Equity, Blackstone and One Rock Capital Partners have held early stage conversations about possible offers for the business, two of the people said. Other interested parties include PAI Partners and CD&R, one of these people and a fourth person added. Conversations with potential bidders are ongoing ahead of a formal process later this year, the people said, cautioning that no deal is guaranteed. Spokespeople for Rothschild, Nestle, PAI, CD&R and Blackstone declined to comment. One Rock and Platinum did not respond to requests for comment. Nestle's water business has attracted interest for decades, including from private equity and strategic buyers, Sanjay Bahadur, head of group strategy and business development, told Reuters in an interview in November. "The main struggle is at Perrier, the rest of the brands are performing well," Vontobel analyst Jean-Philippe Bertschy said. "They have had issues at several (water) sources, and there is an ongoing battle between the French authorities and Nestle." Nestle has previously said its mineral water products are safe to drink but that in the interest of food safety "practices at some of our waters production sites may not be in line with the applicable regulatory framework". It has said that all water production at its locations in France is currently compliant with French regulations. Revenue at the water division increased by 2.9% to 722 million Swiss francs ($874 million) in the first quarter of the year, accounting for less than 4% of Nestle's total revenue, according to its latest results. Bottled water is a difficult category amid water scarcity concerns and weak industry sales since the COVID-19 pandemic. Nestle in 2021 sold its water business in North America for $4.3 billion. ($1 = 0.8862 euros) ($1 = 0.8263 Swiss francs)
Yahoo
28-03-2025
- Business
- Yahoo
Buyout firms mull option for Nestle's $5.4 billion water business, Bloomberg News reports
(Reuters) -PAI Partners and Bain Capital are among the buyout firms considering bidding for Swiss food giant Nestle's water business, which could be valued at about 5 billion euros ($5.38 billion) or more in a deal, Bloomberg News reported on Wednesday. Clayton Dubilier & Rice and KKR have also been studying the business, Bloomberg News said, citing people familiar with the matter. Nestle may retain a stake in the unit in any transaction, the report added. Bain Capital, Nestle, PAI Partners and CD&R declined to comment, while KKR did not immediately respond to a request for comment on the report. In November last year, the consumer product giant said it would carve out its 3.3 billion Swiss franc water business into a standalone global unit starting January 1, 2025, and is open to partnerships and deals. Nestle's water business has had interest for decades, including from private equity and strategic buyers, Sanjay Bahadur, head of group strategy and business development, told Reuters last year. The company also plans to boost advertising and marketing while reducing costs by at least $2.8 billion by 2027. This comes as shoppers are shifting towards cheaper, better-advertised or more innovative brands, eating into Nestle's market share. Rival Unilever, which has also fielded criticism for having too many brands, announced in March it planned to spin off its ice cream business and has signalled its willingness to sell weaker brands. ($1 = 0.9301 euros) Sign in to access your portfolio
