Nestlé to Sell North American Water Business for $4.3B
VEVEY, Switzerland — Nestlé S.A. has reached an agreement to sell its regional spring water brands, purified water business and beverage delivery service in the United States and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for $4.3 billion. Nestlé's international premium brands, which include Perrier, S.Pellegrino and Acqua Panna, are not part of the deal.
The transaction is expected to close following completion of customary closing conditions, the company said.
"We continue to transform our global waters business to best position it for long-term profitable growth. This sale enables us to create a more focused business around our international premium brands, local natural mineral waters and high-quality healthy hydration products," said Nestlé CEO Mark Schneider. "We will also boost our innovation and business development efforts to capture emerging consumer trends, such as functional water."
Brands in the United States and Canada included in the acquisition are:
- Poland Spring Brand 100% Natural Spring Water
- Deer Park Brand 100% Natural Spring Water
- Ozarka Brand 100% Natural Spring Water
- Ice Mountain Brand 100% Natural Spring Water
- Zephyrhills Brand 100% Natural Spring Water
- Arrowhead Brand Mountain Spring Water
- Pure Life
- Splash
The sale follow's Nestlé's 2020 announcement that it would conduct a strategic review of parts of the North American waters division and sharpen the focus of its global water portfolio.
Nestlé also announced renewed sustainability commitments that build on existing efforts to enhance water stewardship and tackle plastic waste, in accordance with its commitment to make its entire water portfolio carbon neutral by 2025.