Key Takeaways
- • PAI Partners, Nestle's long-standing private equity partner, has exited the bidding process for a 50% stake in Nestle's water business, which includes the Perrier brand, according to Bloomberg News on June 8, 2026.
- • Clayton Dubilier & Rice and billionaire Tom Gores's Platinum Equity remain active bidders for the water business stake, while KKR dropped out in recent weeks.
- • Nestle's water business has attracted sustained interest from both private equity and strategic buyers for decades, signaling persistent demand for the portfolio despite the narrowing bidder field.
- • The exit of multiple major firms (PAI Partners and KKR) suggests either valuation concerns or strategic reassessment among top-tier buyout shops regarding the water business opportunity.
Summary
Nestle SA's long-standing private equity partner PAI Partners has withdrawn from the bidding process for a 50% stake in the consumer giant's water business, which includes the Perrier brand, according to Bloomberg News reporting on June 8, 2026. The exit narrows the competitive field for what represents a significant divestiture of one of Nestle's iconic beverage portfolios.
The bidding group for Nestle's water business has contracted as the process advances. Clayton Dubilier & Rice and Platinum Equity, the investment vehicle controlled by billionaire Tom Gores, remain active in the race for the 50% stake. KKR & Co., another heavyweight private equity firm, had already dropped out in recent weeks, according to the report. The sequential exits by major financial buyers underscore either heightened valuation expectations from Nestle or shifting strategic priorities among top-tier sponsors regarding the water business segment.
Nestle's water business has maintained appeal across both private equity and strategic buyer constituencies for an extended period. In a 2024 interview with Reuters, Sanjay Bahadur, then head of group strategy and business development at Nestle, acknowledged that the water business had attracted interest from diverse buyer categories for decades. This context suggests that despite the recent departures by PAI Partners and KKR, the asset class itself retains structural appeal for certain financial sponsors.
Nestle declined to comment on the process, while the affected private equity firms—Clayton Dubilier & Rice, Platinum Equity, KKR, and PAI Partners—did not immediately respond to requests for comment, limiting additional details on the strategic rationales behind specific withdrawals.
The bidding group for Nestle's water business has contracted as the process advances. Clayton Dubilier & Rice and Platinum Equity, the investment vehicle controlled by billionaire Tom Gores, remain active in the race for the 50% stake. KKR & Co., another heavyweight private equity firm, had already dropped out in recent weeks, according to the report. The sequential exits by major financial buyers underscore either heightened valuation expectations from Nestle or shifting strategic priorities among top-tier sponsors regarding the water business segment.
Nestle's water business has maintained appeal across both private equity and strategic buyer constituencies for an extended period. In a 2024 interview with Reuters, Sanjay Bahadur, then head of group strategy and business development at Nestle, acknowledged that the water business had attracted interest from diverse buyer categories for decades. This context suggests that despite the recent departures by PAI Partners and KKR, the asset class itself retains structural appeal for certain financial sponsors.
Nestle declined to comment on the process, while the affected private equity firms—Clayton Dubilier & Rice, Platinum Equity, KKR, and PAI Partners—did not immediately respond to requests for comment, limiting additional details on the strategic rationales behind specific withdrawals.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.