Nestlé S.A. announced that it has reached an agreement to sell its regional spring water brands, purified water business and beverage delivery service in the U.S. and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for $4.3 billion. The transaction is expected to close following the completion of customary closing conditions.
The company’s international premium brands including Perrier, S.Pellegrino and Acqua Panna are not a part of the deal.
The sale includes the following brands in the U.S. and Canada, which had sales of around $3.78 billion in 2019: Poland Spring Brand 100% Natural Spring Water, Deer Park Brand 100% Natural Spring Water, Ozarka Brand 100% Natural Spring Water, Ice Mountain Brand 100% Natural Spring Water, Zephyrhills Brand 100% Natural Spring Water, Arrowhead Brand Mountain Spring Water, Pure Life and Splash. It also comprises the U.S. direct-to-consumer and office beverage delivery service ReadyRefresh.
The agreement follows Nestlé’s announcement last year that it would conduct a strategic review of parts of the North American waters division and sharpen the focus of its global water portfolio.
“We continue to transform our global waters business to best position it for long-term profitable growth,” said Nestlé CEO Mark Schneider. “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 make its entire water portfolio carbon neutral by 2025. In 2020, Nestlé announced renewed sustainability commitments which build on existing efforts to enhance water stewardship and tackle plastic waste.