Nestle to sell North American water brands for $4.3 billion
Nestlé SA has a deal to sell its North American bottled water business in the U.S. and Canada to private equity group One Rock Capital Partners and Metropoulos & Co.
Private equity firm One Rock Capital Partners and Metropoulos & Co. have reached a deal to acquire Nestlé Waters North America, a supplier of bottled water in North America, from Nestlé S.A. for US$4.3 billion.
The agreement follows Nestlé’s announcement last year that it would conduct a strategic review of parts of the North American waters division and sharpen the focus of its global water portfolio.
Headquartered in Stamford, Conn., Nestlé Waters North America consists of the Canadian and U.S. operations of Nestlé Waters, said to be the world’s largest bottled water company. Nestlé Waters North America has approximately 7,000 employees in the U.S. and more than 230 in Canada, and 27 production facilities across North America. Its brands include Poland Spring, Arrowhead, and Pure Life.
“We continue to transform our global waters business to best position it for long-term profitable growth,” CEO Mark Schneider said in a Feb. 17 news release. “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.”
The transaction is expected to be completed in spring 2021. Dean Metropoulos will become the company’s chairman and interim CEO.