Nestle lines up Rothschild for water unit sale, sources say

Amy-Jo Crowley, Andres Gonzalez and Richa Naidu

Thu, May 8, 2025, 7:44 AM 3 min read

By Amy-Jo Crowley, Andres Gonzalez and Richa Naidu

LONDON (Reuters) -Nestle has hired Rothschild to counsel connected the merchantability of its h2o part aboriginal this year, 4 radical acquainted with the substance told Reuters, arsenic the Swiss nutrient elephantine looks to refocus connected bigger brands.

Under caller CEO Laurent Freixe, Nestle has been trying to constrictive its absorption to astir 30 of its 2,000 brands, prioritising labels including Kit-Kat cocoa wafer bars, Nescafe coffee, NAN babe look and Maggi noodles and seasonings.

In November, the radical announced it would carve retired its h2o concern into a standalone planetary portion from January 1, and was unfastened to partnerships and deals. The part has been struggling with capableness issues, the institution has said.

Nestle is aiming to support a involvement successful the h2o concern that includes brands specified arsenic Perrier and S.Pellegrino, the sources said, who spoke connected information of anonymity due to the fact that the substance is private.

The portion could beryllium valued much than 5 cardinal euros ($5.6 billion), 1 of the radical added.

Private equity firms including Platinum Equity, Blackstone and One Rock Capital Partners person held aboriginal signifier conversations astir imaginable offers for the business, 2 of the radical said. Other funny parties see PAI Partners and CD&R, 1 of these radical and a 4th idiosyncratic added.

Conversations with imaginable bidders are ongoing up of a ceremonial process aboriginal this year, the radical said, cautioning that nary woody is guaranteed.

Spokespeople for Rothschild, Nestle, PAI, CD&R and Blackstone declined to comment. One Rock and Platinum did not respond to requests for comment.

Nestle's h2o concern has attracted involvement for decades, including from backstage equity and strategical buyers, Sanjay Bahadur, caput of radical strategy and concern development, told Reuters successful an interrogation successful November.

"The main conflict is astatine Perrier, the remainder of the brands are performing well," Vontobel expert Jean-Philippe Bertschy said. "They person had issues astatine respective (water) sources, and determination is an ongoing conflict betwixt the French authorities and Nestle."

Nestle has antecedently said its mineral h2o products are harmless to portion but that successful the involvement of nutrient information "practices astatine immoderate of our waters accumulation sites whitethorn not beryllium successful enactment with the applicable regulatory framework".

It has said that each h2o accumulation astatine its locations successful France is presently compliant with French regulations.

Revenue astatine the h2o part accrued by 2.9% to 722 cardinal Swiss francs ($874 million) successful the archetypal 4th of the year, accounting for little than 4% of Nestle's full revenue, according to its latest results.