Nestlé has agreed to sell a 50% stake in its global waters business to private equity firm Platinum Equity in a $3.4 billion transaction, creating a new standalone company, Peranel, as the Swiss food giant accelerates its portfolio reshaping strategy under CEO Philipp Navratil.
The newly formed 50:50 joint venture will house more than 30 global and regional water brands, including S.Pellegrino, Source Perrier, Essentia and Nestlé Pure Life. Headquartered in Paris, Peranel will operate as an independent company with the flexibility to invest in brand building, innovation and expansion.
The transaction values Peranel at an enterprise value of €4.9 billion (around $5.6 billion) and is expected to close in the first half of 2027, subject to regulatory approvals. The company will be led by Muriel Lienau, the current CEO of Nestlé’s waters and premium beverages business.
Nestlé said the partnership would allow Peranel to pursue long-term growth through greater operational agility while strengthening its portfolio of premium and local water brands. The company plans to focus on innovation, premiumisation, operational excellence and sustainability as key growth drivers.
The divestment is part of a broader strategic overhaul initiated by Nestlé to streamline its global portfolio and sharpen its focus on faster-growing, higher-margin businesses. The company first announced plans in 2024 to separate its waters and premium beverages division as part of a wider cost-saving programme targeting $2.8 billion in savings by 2027.
Since taking charge, CEO Philipp Navratil has accelerated portfolio rationalisation through a series of divestments. Earlier this year, Nestlé sold Blue Bottle Coffee to Centurium Capital, exited the remainder of its ice cream business through a sale to Froneri, and has also initiated plans to divest its mainstream vitamins, minerals and supplements business.
The waters and premium beverages division accounts for around 4% of Nestlé’s global revenue but has faced prolonged operational and market challenges in recent years.
Nestlé also reported a 2.5% year-on-year decline in first-half sales to 43 billion Swiss francs, underscoring the company’s efforts to refocus on higher-growth categories while improving operational efficiency.