Nestle to raise €3 billion from water business spin-off into Peranel joint venture with Platinum Equity

The deal structure

Nestle will transfer its water and premium beverages division into a new Paris-based company called Peranel, jointly owned with US investment firm Platinum Equity. The 50-50 joint venture carries an enterprise value of €4.9 billion and will generate approximately €3.0 billion in cash proceeds for Nestle at closing, expected in the first half of 2027. The transaction remains subject to employee consultation and regulatory approvals. Muriel Lienau, currently head of Nestle Waters, will lead the new entity.

Brands and operations

Peranel will house more than 30 brands sold across 120 countries, including S.Pellegrino, Source Perrier, Acqua Panna, and the global Nestle Pure Life label, as well as local names like Levissima, Vittel, Contrex, and Hépar. The division's sales rose 5.1% in the first half of 2026 to over €1.9 billion, driven by the US market and international labels. Lienau highlighted San Pellegrino's expansion, noting that 110 million cans of the flavoured "San Pellegrino Ciao" were sold in the United States in a single year. She said Nestle had invested €200 million in its Italian plants over the past three years and planned to continue at that pace to meet demand. The Italian production base includes four plants and 1,500 employees.

San Pellegrino is the best example of our ability to grow a brand worldwide and across different product categories, without giving up its territorial roots.

Why Nestle is letting go

The water unit had become a burden for the Swiss giant after a scandal in France over unauthorized filtration treatments at its mineral water sites, coupled with mounting environmental criticism over water use and sustainability. Nestle has been reshaping its portfolio under CEO Philipp Navratil, concentrating on coffee, pet food, nutrition, and culinary products. Reuters reported in May 2025 that the company had hired Rothschild to explore a partnership or partial sale of the European water business. Navratil said the joint venture would give Peranel the agility to invest and grow.

By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility.

Platinum Equity's role

Platinum Equity, founded by billionaire Tom Gores and based in Beverly Hills, manages over $48 billion in assets and has acquired more than 550 companies in three decades. It beat out rival funds Pai and Cd&R in a long and competitive auction. The firm will support Peranel's expansion in the US, the world's largest and most lucrative market.

Nestle's half-year results

Alongside the deal, Nestle reported first-half 2026 sales of 43.1 billion Swiss francs, down 2.5% from a year earlier, while net profit fell 31.4% to 3.5 billion francs due to restructuring costs and asset write-downs. Second-quarter organic sales growth reached 3.7%, slightly above the 3.6% analyst consensus, with price increases of 1.9% and volume growth of 1.8%. The 1.9% price rises were ahead of the average analyst estimate of 1.8%. The company raised its full-year organic sales growth target to 3–4%, from "around 3%". It also noted higher transportation and energy costs arising from the Middle East conflict, though it expects a higher second-half underlying trading operating profit margin on the back of lower coffee and cocoa costs.

What happens next

Lienau said the partnership "brings together the best of both worlds" and that Platinum's entry would allow increased investments to accelerate the growth seen over the last six quarters. She did not detail discussions with Platinum about the French water treatment scandal but stressed the importance of the compliance work done in recent years to bring the company into line with the regulatory framework. The joint venture is expected to be operational by the first half of 2027.