<\/p>\n
Nestl\u00e9 SA is forging ahead with the sale of a stake in its \u20ac5 billion ($5.8 billion) water business, which includes the well-known brands Perrier and S.Pellegrino, people familiar with the matter said.<\/p>\n
The Swiss food company is asking suitors to submit first-round bids for the holding this month, according to the people, who asked not to be identified discussing confidential information. Nestl\u00e9 is working with Rothschild & Co on the sale.<\/p>\n
Private equity firms PAI Partners, Blackstone, KKR & Co, Bain Capital and Clayton Dubilier & Rice have shown interest in the asset, Bloomberg News reported previously.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Bankers are working on debt financing of \u20ac2 billion to \u20ac3 billion to back a potential deal, according to the people. The debt is expected to be in the form of leveraged loans, denominated in euros and dollars, they said.<\/p>\n
The debt being prepared equates to around four to six times the water unit\u2019s roughly \u20ac500 million in earnings before interest, taxes, depreciation and amortisation, one of the people said.<\/p>\n
Deliberations are ongoing and no final decisions on the size or timing of the stake sale have been made, the people said. A representative for Nestl\u00e9 declined to comment. A spokesperson for Rothschild didn\u2019t immediately provide comment.<\/p>\n
Nestl\u00e9 announced plans in late 2024 to separate its water business, which has long been considered a candidate for restructuring. 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.<\/p>\n
While bankers maintain the water unit is a great asset with premium brands, investors will take into account environmental concerns over bottled water, as well as recent scandals at Nestl\u00e9. The food company came under scrutiny in 2024 after admitting to using filtering methods illegal for natural mineral waters. It\u2019s also battling a deepening infant formula contamination crisis.<\/p>\n
Private equity dealmaking jumped last year in line with the broader recovery in mergers and acquisitions, with buyout firms eager to spend their vast amounts of dry powder. There is now a growing pipeline of deals as companies and private equity firms seize on the improved market sentiment, with some bankers predicting a record year for M&A.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n