Nestlé Sells Half Its Water Business for $3 Billion, Fueling European Carveout Trend
Nestlé has sold half of its water business to private equity firm Platinum Equity in a deal valued at €4.9 billion ($5.6 billion), generating approximately €3 billion in cash for the Swiss food giant. The transaction forms an independent joint venture, headquartered in Paris and operating over 30 brands including S.Pellegrino and Perrier. This move aligns with Nestlé's strategy to focus on core businesses following a similar sale of its Blue Bottle Coffee division earlier this year. The deal is part of a broader trend across Europe where corporations are increasingly divesting non-core or slower-growing units amid higher capital costs, according to PitchBook data. European private equity carveouts have already reached €41.8 billion in value through July 23, with potential for the total to surpass previous records if current momentum continues. Analysts suggest that while deal counts remain lower than last year's record levels, larger transactions are driving increased activity. The shift reflects a strategic pivot by companies and private equity firms toward operational improvements rather than financial engineering.
Tickers: $TPG
Topics: European carveouts Nestlé Platinum Equity water business sale