Nestle's longtime PE partner drops out of bidding for Perrier

Nestlé has initiated a formal sale process for its water and premium beverages business, valued at approximately €5 billion (US$5.2 billion), with potential bidders including major private equity firms. However, one of Nestlé’s longtime private equity partners has reportedly withdrawn from the bidding process, according to industry sources. The firm, which had previously collaborated with Nestlé on strategic investments and divestitures, has chosen not to pursue the acquisition at this time.

The water business includes well-known brands such as Perrier, S.Pellegrino, Acqua Panna, Vittel, and Contrex. In its nine-month 2025 results, the unit reported organic growth of 4.4%, driven by innovation and strong performance in out-of-home sales channels. Despite this, the business has faced regulatory scrutiny in France, where a Senate inquiry revealed alleged illegal water treatment practices at several of its facilities. Nestlé has maintained that its products remain safe for consumption.

The sale is part of a broader strategic shift under Nestlé’s new CEO, Philipp Navratil, who has emphasized cost efficiency and portfolio optimization. The company previously sold its North American water brands to One Rock Capital Partners in 2021 for US$4.3 billion. With the current process underway, Nestlé aims to attract a new strategic partner to unlock further value from its premium beverage portfolio.