Nestlé in £4.2 billion water business joint venture

Nestlé has confirmed plans to spin out its Buxton and Perrier water business to create a joint venture worth about £4.2 billion.

The Swiss maker of Kit Kat has agreed a deal with Platinum Equity to form a new company called Peranel.

The companies will each own a 50 per cent stake.

The venture will include more than 30 brands, including Nestlé’s waters such as S.Pellegrino, Perrier, Buxton and Acqua Panna, its hydration drinks and the global Nestlé Pure Life brand.

Peranel will be headquartered in Paris and led by the division’s current chief executive Muriel Lienau.

Philipp Navratil, Nestlé chief executive, said: “Peranel will be better positioned to execute its strategy with enhanced agility.

“Through additional focus, it will be well equipped to drive its long-term growth ambitions by strengthening this unique portfolio of international and local brands with continued investments in innovation, premiumisation, operational excellence and sustainability.”

However, trade union Unite has warned Nestlé and Platinum against an “attack on jobs” at its UK-based Buxton water business.

Sharon Graham, Unite general secretary, said: “The new owners are on notice.

“If there are any attempts to attack the jobs, pay and conditions of Unite members on the back of this sale in order to line the pockets of investors, we will fight back.”

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