Platinum Equity Takes Stake in Nestlé's Water Business

In a significant carve-out transaction valued at approximately €4.9 billion (CHF 4.5 billion), Platinum Equity has partnered with Nestlé to establish Peranel, a new, independent entity housing the global beverage giant's extensive mineral water portfolio. This strategic move, expected to finalize in the first half of 2027, will see Platinum Equity acquire a 50% stake, creating a 50:50 joint venture designed to unlock new growth avenues for a collection of over 30 renowned brands.

The newly formed company, Peranel, will encompass iconic names such as Perrier, S.Pellegrino, Acqua Panna, and Levissima, alongside premium hydration beverages, the global Nestlé Pure Life brand, and various other strong regional labels. This divestment allows Nestlé to streamline its operations, while Peranel gains the agility to focus exclusively on its water and premium beverage offerings. The deal implies a cash inflow of roughly €3 billion (CHF 2.8 billion) for Nestlé upon closing.

Peranel will operate from its headquarters in Paris, led by Muriel Lienau, who currently serves as CEO of Nestlé Waters. The company boasts an internal Research and Development team credited with approximately 120 product launches since 2022, indicating a strong foundation for future innovation. This dedicated focus is anticipated to fuel the expansion of its premium and functional beverage lines.

Philipp Navratil, CEO of Nestlé, expressed confidence in the partnership, stating, “With Platinum Equity, Peranel will be better positioned to execute its strategy with greater agility. A sharper focus will equip it well to pursue its long-term growth ambitions, enhancing this unique portfolio of international and local brands through continued investment in innovation, premiumization, operational excellence, and sustainability.”

Platinum Equity, a global investment firm managing approximately $48 billion in assets, brings substantial experience in carve-outs and industrial/consumer company acquisitions. Louis Samson, Co-President at Platinum Equity, highlighted the firm's commitment: “We are excited to collaborate with Nestlé and take this next step together. We bring a unique energy and vision, alongside commercial and operational expertise. By combining the world-class development, execution, and marketing capabilities of Nestlé and Peranel, our joint venture creates a strong partnership and a high-value team.”

Igor Chacartegui, Managing Director at Platinum Equity, further elaborated on the strategic vision: “Peranel represents an extraordinary collection of iconic brands that consumers know and love globally. We look forward to working alongside Nestlé, Muriel, and her team to broaden Peranel’s reach and support its continued organic growth. We will also deploy our M&A expertise to help consolidate and strengthen Peranel’s existing portfolio.” The global bottled water market, valued at over $200 billion and projected for steady growth driven by health consciousness and demand for premium products, presents a fertile ground for Peranel's focused strategy.