Nestlé to spin off water business in private equity joint venture

Nestlé is partnering with US private investor Platinum Equity to create Peranel, a 50:50 joint venture for Nestlé’s waters and premium beverages business.

Spanning more than 30 brands with products sold in 120 countries, Peranel will include mineral water brands such as S Pellegrino, Perrier and Acqua Panna as well as premium and functional hydration beverages, Nestlé Pure Life and other local water brands.

Subject to regulatory approvals, the transaction is expected to close in the first half of 2027, valuing Peranel at £4.2b, with cash proceeds at closing for Nestlé of approximately £2.6b.

As an independent company, Peranel will have full flexibility to invest in its brands and pursue growth opportunities. The business includes an in-house R&D team that has contributed to approximately 120 launches since 2022 and has built a robust product development pipeline.

Nestlé CEO Philipp Navratil said: “By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility.

“Through additional focus, it will be well equipped to drive its long-term growth ambitions by strengthening this unique portfolio of international and local brands, with continued investments in innovation, premiumisation, operational excellence and sustainability.”

Headquartered in Paris, Peranel will be led by an experienced management team under Muriel Lienau, the current CEO of the business.

Lienau added: “This announcement marks an important milestone for our teams and an exciting new chapter in the evolution of our business. I am grateful both for the continued support of Nestlé and pleased to be joined by Platinum Equity in our ambitious journey.”

California-headquartered Platinum Equity has approximately US$48b (£36b) of global assets under management. Co-president Louis Samson said: “We bring unique energy and focus as well as business and operational expertise to the table. Combined with Nestlé’s and Peranel’s world-class product development, execution and marketing capabilities, our joint venture creates a powerful partnership and a very strong team.

“We have great respect for Peranel’s brands, the people that bring them to life and the customers and communities they serve. We will leverage our extensive experience in establishing and supporting stand-alone companies to create long-term value."

Platinum Equity managing director Igor Chacartegui added: “Peranel represents a remarkable collection of iconic brands that consumers know and trust around the world. We look forward to working alongside Nestlé, Muriel and her team to expand Peranel’s reach and support its continued organic growth. We’ll also bring our M&A capabilities to help build upon and sharpen Peranel’s existing portfolio.”

Nestlé’s water and premium beverages activities became a global standalone business in 2025 as part of a £2.2b cost saving plan.

At the time, the new management pledged to evaluate business strategy, including exploring partnership opportunities “to enable Nestlé’s brands and growth platforms to achieve their full potential”.

Earlier this year, Nestlé announced it would be selling off its remaining ice-cream business to Froneri, a joint venture it created in 2016 with PAI Partners, in a £2.9b deal.