(Feb 4): Nestlé SA has added Deutsche Bank AG to advise on a potential 50% stake sale in its water business, which could be valued at around €5 billion in a deal, according to people familiar with the matter.
The German bank will work alongside Rothschild & Co, the people said, asking not to be identified as the details aren’t public. Nestlé sent out marketing information to potential buyers last month and is seeking initial bids by March, the people said.
Nestlé announced plans in late 2024 to separate its water business, which includes well-known brands Perrier and S Pellegrino. A revival of the process follows a leadership crisis at the company that brought the arrival of new chief executive officer Philipp Navratil in September.
Private equity firms including PAI Partners, Blackstone Inc, KKR & Co, Bain Capital and Clayton Dubilier & Rice have shown interest in the water asset, Bloomberg News reported previously.
Nestlé is considering a partnership model for the water business, similar to its ice cream joint venture with PAI Partners, the people said. No final decisions have been made on the structure of a deal and Nestlé could keep the asset for longer, they said.
Representatives for Nestlé and Deutsche Bank declined to comment.
See also: Ford in talks with Geely to share European production capacity — reports
While the water unit has some premium brands, investors will take into account the environmental concerns over bottled water. The food company came under scrutiny in 2024 after admitting to using filtering methods illegal for natural mineral waters. It’s also grappling with a infant formula contamination crisis, alongside peers including Danone SA and Groupe Lactalis.
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