Nestlé has entered negotiations for the sale of its North American water business to One Rock Capital Partners, according to multiple media reports.
Reuters reported that the total deal, including debt, could be valued in excess of $4 billion. Nestlé and One Rock each declined to comment.
Nestlé Waters North America announced in June that it was seeking to divest multiple products and services from the division, which reported over $3.6 billion in sales in 2019. Those included the company’s regional still and spring water brands — Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills and Arrowhead — as well as the Nestlé Pure Life brand and the delivery service ReadyRefresh.
In a press release in June 2020, the company stated that it would shift its focus towards increasing sales of its international brands such as Perrier and S. Pellegrino, as well as seeking out “strategic acquisitions” in the water category “while pledging to make its entire global water portfolio carbon neutral and replenish associated watersheds by 2025.”
All regional brands and Nestlé Pure Life reported single-digit year-over-year declines in sales through October 26, 2020, according to data from market research group IRI. The overall convenience PET still water category grew 2.5% year-over-year.
Over the past year, Nestlé revamped ReadyRefresh with expanded beverage options — including coconut water (Vita Coco), nitro cold brew coffee (Rise Brewing Co.), tea (Shaka Tea) and energy drinks (UPTIME) — as well as achieving carbon neutrality.
In a press release in June 2020, the company stated that it would shift its focus towards increasing sales of its international brands such as Perrier and S. Pellegrino, as well as seeking out “strategic acquisitions” in the water category “while pledging to make its entire global water portfolio carbon neutral and replenish associated watersheds by 2025.”
According to the company website, New York-based One Rock manages about $3.2 billion of committed capital across three flagship funds. Citing a special partnership with manufacturing conglomerate Mitsubishi, the company has a portfolio “comprised of companies from a spectrum of industries, including chemicals and process industries, specialty manufacturing and healthcare products, and food manufacturing and distribution.”