Nestlé and Platinum Equity create Peranel in $5.6B water JV

Nestlé struck a $5.6 billion joint venture with Platinum Equity to carve out its waters and premium beverages unit, betting a standalone structure can accelerate growth in a category shaped by health and wellness trends.

"By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility," said Philipp Navratil, chief executive officer of Nestlé.

The 50/50 venture, named Peranel, will house more than 30 brands sold across 120 countries, including S.Pellegrino, Source Perrier, Acqua Panna and Nestlé Pure Life. The business carries an enterprise value of EUR 4.9 billion, with Nestlé expecting cash proceeds of about EUR 3 billion at closing. The transaction is subject to employee consultations and regulatory approvals, with completion targeted by the first half of 2027.

The carve-out allows Nestlé to streamline its portfolio while giving Peranel independent investment capacity in innovation and marketing. For Platinum Equity, the deal marks its largest European investment and a bet that focused management can extract more value from a collection of brands that already command premium positioning in the global bottled water market, valued at more than $300 billion.

Muriel Lienau, a three-decade Nestlé veteran who currently leads the waters business, will serve as Peranel's chief executive officer. The company will be headquartered in Paris and retain an in-house research and development team that has launched approximately 120 products since 2022, with a pipeline of new offerings in development.

Platinum Equity brings three decades of experience managing corporate divestitures and supporting standalone companies. The firm has executed similar partnerships with Ball Corporation, Caterpillar, Danone, Emerson Electric, Ingersoll Rand, Kohler and Telstra. With about $48 billion in assets under management, the firm's M&A&O strategy — mergers, acquisitions and operations — will be applied to sharpen Peranel's portfolio and pursue bolt-on acquisitions.

Deal Structure and Advisors

Bank of America served as financial adviser to Platinum Equity, while Latham & Watkins LLP provided legal counsel. Nestlé was advised by Rothschild, which Reuters reported in May 2025 had been hired to explore a partnership or sale of a stake in the European water business.

The transaction comes as Nestlé reshapes its portfolio under Navratil, who has prioritized core brands and margin improvement. The company separately reported second-quarter organic sales growth of 3.7%, slightly above the 3.6% consensus estimate, and raised its full-year organic sales guidance to 3% to 4% from about 3%.

What's at Stake

For Platinum Equity, the Peranel joint venture represents a cornerstone investment in Europe, where the firm now holds a dozen portfolio companies across the UK, Germany, Italy, France, the Netherlands and Spain. Co-President Louis Samson described the deal as a demonstration of the firm's ability to execute large, complex transactions in the region.

The water category faces structural tailwinds from rising health consciousness and premiumization trends, but also challenges including regulatory scrutiny of plastic packaging and water sourcing rights. Peranel's independence gives it the flexibility to address these issues with dedicated investment, while Nestlé retains a 50% stake and continues to benefit from the business's performance.

This article is for informational purposes only and does not constitute investment advice.