Nestlé has agreed to sell its North American water unit to One Rock Capital Partners, in partnership with Metropoulos & Co., for $4.3 billion.
Nestlé announced that it was exploring the sale of ‘the majority’ of its Nestlé Waters North America (NWNA) unit last year, as it looked to sharpen the focus of its global water portfolio.
The newly announced agreement with a One Rock affiliate and Metropoulos & Co. includes Nestlé’s regional spring water brands, purified water business and beverage delivery service in the US and Canada.
NWNA’s portfolio of regional spring and national purified water brands includes Poland Spring, Deer Park, Ozarka, Ice Mountain, Pure Life and more. The bottled water provider has around 7,000 employees in the US and more than 230 in Canada, according to One Rock.
Headquartered in Stamford, Connecticut, NWNA has 27 production facilities across North America and operates the direct-to-consumer and office beverage delivery service ReadyRefresh.
Commenting on the sale, Nestlé CEO Mark Schneider 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. We will also boost our innovation and business development efforts to capture emerging consumer trends, such as functional water.”
Following the transaction, Metropoulos & Co. founder Dean Metropoulos will become NWNA’s chairman and interim CEO.
“We are thrilled to partner with Dean, a highly accomplished investor and operator with proven success reimagining brands and businesses around the world, to lead NWNA,” said One Rock partner, Kimberly Reed.
“As a private company, the business is expected to have greater resources and flexibility to drive continued growth, strengthen its existing operations, and execute on its mission to deliver healthy hydration to consumers.”
Dean Metropoulos added: “I am pleased to have the opportunity to lead NWNA as it enters the next phase of evolution.
“This is an important inflection point for the business as it transitions to an independent company, and I look forward to collaborating with One Rock and NWNA’s management team to deliver unparalleled value to our customers.”
Subject to customary closing conditions, the transaction is expected to be completed in the spring.
Nestlé’s international premium brands such as Perrier, S.Pellegrino and Acqua Panna are not part of the deal.
© FoodBev Media Ltd 2020
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