Nestlé to Sell Water Division Including San Pellegrino in €5 Billion Deal

Nestlé is gearing up for a significant operation, potentially valued at €5 billion, as the Swiss multinational plans to sell its Nestlé Waters division. The sale includes renowned brands such as Acqua San Pellegrino, Acqua Panna, Perrier, Vittel, Al Manhal, and Buxton, marking a strategic shift in Nestlé's portfolio.

Potential Buyers Eye Nestlé Waters

Several major investment funds have reportedly shown interest in acquiring Nestlé Waters. The American giants CD&R, managing over $80 billion, and One Rock Capital, which previously acquired Nestlé Waters' North American brands in 2021, are among the frontrunners. Additionally, Pai Partners, already a 50% shareholder with Nestlé in the Froneri ice cream joint venture, could also be a contender. Froneri owns brands like Häagen-Dazs, Maxibon, and Coppa del Nonno.

The Froneri model might serve as a blueprint for the water division, potentially leading to an equal partnership that would allow Nestlé to retain a stake, sharing both risks and strategies. Rothschild & Co consultants will manage the auction, expected to commence in early 2026.

Financial Performance of Nestlé Waters

From January to September 2025, Nestlé Waters generated approximately €3 billion in revenue, consistent with the same period last year. However, the performance varies significantly across different brands.

Here's a look at the revenue of Nestlé Waters:

While the Italian brands, San Pellegrino and Acqua Panna, have demonstrated solid growth, reinforcing their market share and affirming their status as symbols of Italian excellence globally, Perrier has faced challenges.

Challenges Faced by Perrier

Perrier has been hampered by production issues and a tarnished reputation due to legal disputes over alleged prohibited treatments of mineral water. Despite winning in court, the negative media coverage has slowed the brand's commercial recovery.

Strategic Considerations for the Sale

Nestlé had previously considered selling San Pellegrino separately. In recent months, this idea has lost momentum in favor of a comprehensive valuation of the entire division. Presenting Nestlé Waters as a unified portfolio provides investors with a clearer, more balanced view, capitalizing on the strengths of the Italian brands while mitigating the weaknesses of Perrier.

The potential sale of Nestlé Waters is attracting significant attention from investors and industry players, all keen to acquire what is described as the "Italian jewel" of mineral waters.

Investment Funds Interested

The Role of Pai Partners

If Pai Partners is confirmed as the preferred partner, the iconic Italian water brand would maintain ties with the Swiss group under a shared management structure, poised to guide the brand towards new international opportunities. This partnership approach reflects a strategy to balance tradition and innovation, ensuring the continued success and global reach of San Pellegrino.

Financial Metrics of Key Brands

The Italian Water Brands

San Pellegrino and Acqua Panna are recognized globally as symbols of Italian excellence. These brands have shown consistent growth and have solidified their positions in the market, making them attractive assets in the sale.

Nestlé’s Strategic Shift

The decision to sell Nestlé Waters reflects a broader strategic shift within Nestlé to optimize its portfolio and focus on high-growth categories. By divesting non-core assets, Nestlé aims to enhance shareholder value and streamline its operations.

Benefits of Selling as a Unified Portfolio

Presenting Nestlé Waters as a single, unified portfolio offers several advantages. It allows investors to gain a more comprehensive understanding of the division's overall value, leveraging the strengths of the Italian brands while mitigating the challenges faced by Perrier. This approach is expected to maximize the sale price and attract a wider range of potential buyers.

Past Considerations for San Pellegrino

Nestlé had, in the past, explored the possibility of selling San Pellegrino as a separate entity. However, this idea has recently lost traction, with the focus shifting towards a comprehensive valuation of the entire Nestlé Waters division. This change in strategy reflects a recognition of the synergies and benefits of selling the portfolio as a whole.

Here's a summary of the key aspects of the potential sale: