Nestle’s Longtime PE Partner Drops Out of Bidding for Perrier

(Bloomberg) — Nestle SA’s long-time private equity partner, PAI Partners, has dropped out of the bidding for the consumer giant’s water business, people with knowledge of the matter said.

PAI is no longer pursuing a stake in the unit, which owns brands including Perrier and S.Pellegrino, the people said. The European buyout firm was seen as a leading contender, given its longstanding ties with Nestle including a jointly owned ice cream venture, according to the people.

Clayton Dubilier & Rice and billionaire Tom Gores’s Platinum Equity are still pursuing bids for a 50% stake in the Nestle water business, the people said. KKR & Co. dropped out of the process in recent weeks, according to the people.

Nestle said in late 2024 it would separate its water business. During the bidding process, some suitors balked at issues including restrictive conditions on data access for financing banks and the valuation of around €5 billion ($5.8 billion) that Nestle has been seeking for the business, some of the people said.

Representatives for Nestle, PAI and CD&R declined to comment. Spokespeople for Platinum and KKR didn’t immediately respond to queries.

Nestle posted resilient sales growth in the first quarter, helping it contain the fallout from the largest product recall in its 160-year history. Organic revenue rose 3.5%, aided by growth in coffee and snacks. Chief Executive Officer Philipp Navratil, who took over in September, is pushing ahead with a turnaround as the company emerges from an infant formula recall in over 60 countries.

–With assistance from Fabienne Kinzelmann and Claire Ruckin.

©2026 Bloomberg L.P.