Nestlé reorganises water business through Peranel venture
Nestlé expects about €3 billion in cash proceeds when its water business is placed under Peranel, jointly owned with Platinum Equity.
- Nestlé is moving its water portfolio into a new venture called Peranel, which will be an equal partnership with US investment firm Platinum Equity.
- The reorganization is expected to generate approximately €3 billion in cash for Nestlé, with the new Peranel business assigned an enterprise value of €4.9 billion.
- The Peranel venture will include premium brands such as Source Perrier, S.Pellegrino, and Acqua Panna, as well as the Nestlé Pure Life business.
Nestlé’s water portfolio is set to move into Peranel, a business to be owned equally with US investment firm Platinum Equity.
The Swiss food group expects the arrangement to yield around €3 billion ($3.43 billion) in cash proceeds.
Announcing the plan on Thursday (July 23), Nestlé assigned Peranel an enterprise value of €4.9 billion.
The transaction is expected to close in the first half of next year, with Nestlé anticipating receipt of the proceeds at closing.
Peranel’s portfolio will comprise the premium water brands Source Perrier, S.Pellegrino and Acqua Panna, together with the Nestlé Pure Life business and local water businesses.
Nestlé has been weighing alternatives for its water division for some time while dealing with legal and regulatory fallout in France over unauthorised water treatment.
The unit has also faced mounting environmental criticism concerning water use and sustainability.
Chief executive Philipp Navratil is also pursuing stronger growth and profitability through a focus on Nestlé’s core brands.
The group, whose business ranges from infant formula and coffee to pet foods, reported its first-half results on Thursday.
“By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility,” Navratil said in a statement.
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