Coffee Service

Nestle moves forward on plans to divest North American water brands

Logo provided.

October 16, 2020

Nestlé is expecting first round bids for the North American water brands it plans to divest, according to unnamed sources, Equities.com reported. The company plans to divest Poland Spring Pure Life, Zephyrhills, Arrowhead, Ozarka, Deer Park and Ice Mountain, according to sources familiar with the matter.

The sale could net around $5 billion based on core earnings of around $600 million, according to one source.

The company wants to retain control of premium water brands such as San Pellegrino and Perrier.

Private equity funds such as Apollo that are focused on turnarounds are expected to show interest, the sources said.

Morgan Stanley is managing the sale, according to one source.

Refresco, a Dutch bottling company active in the U.S., could explore a bid, as well as Niagara Bottling and Primo Water, according to the sources.