Nestle SA agreed to sell its bottled-water business in the US and Canada to private-equity firm One Rock Capital Partners for $4.3 billion, as the food giant continues to revamp its portfolio.
The sale to One Rock, which is partnering with Metropoulos & Co., involves well-known brands including Poland Spring and Deer Park. Nestle’s international premium brands including Perrier, San Pellegrino, and Acqua Panna are not part of the deal.
Nestle in June announced its strategic review of the unit, as it planned to sharpen the focus of its global water portfolio. Bloomberg News reported earlier this month that the company was in talks to sell the business to One Rock. The food maker has been revamping its portfolios and divesting assets since Mark Schneider became a chief executive officer in 2017, as he focuses on faster-growing areas like coffee and pet food while pivoting away from snacks.
Bottled water sales have struggled to recover amid a decline in out-of-home dining during the pandemic. Nestle’s North American water business had sales of about 3.4 billion francs ($3.8 billion) in 2019, excluding the international brands. Facing pressure from activist investors demanding higher profit, Schneider has moved the world’s largest food and beverage company away from convenience foods and invested in a plant-based push, including launching the first vegan KitKat.