One Rock Capital Partners has joined forces with Metropoulos to buy the regional water brands, purified water business and beverage delivery service of Nestlé in the US and Canada
Nestlé has reached an agreement to sell its regional spring water brands, purified water business and beverage delivery service in the US and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for $4.3 billion. The company’s international premium brands including Perrier, S.Pellegrino and Acqua Panna are not a part of the deal.
The sale is aligned to Nestlé strategic transformation of the water business, which the company announced in June, when the CPG food giant decided to focus on functional drinks and healthy hydration. The first divestment took place in July, when Nestlé agreed to sell its Pure Life bottled water business to Ice River Spring.
Now, One Rock Capital Partners in partnership with Metropoulos & Co. have struck a deal that includes brands sold in the US and Canada – Polar Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Splash, and Pure Life – the brand that Ice River Spring wanted to buy. The deal also comprises the US direct-to-consumer and office beverage delivery service ReadyRefresh.
Nestlé said this portfolio contributed to around CHF$3.4 billion in sales in 2019.
Commenting on the transaction, Mark Schneider, Nestlé chief executive, 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.”
Nestlé reiterated its commitment to making its entire water portfolio carbon neutral by 2025. The company announced last year its renewed sustainability commitments, which build on existing efforts to enhance water stewardship and tackle plastic waste.
Date published: 17 February 2021