Linklaters and Latham steer Nestlé’s $5.6bn beverages PE carve-out

Latham & Watkins and Linklaters have secured lead roles on the creation of a $5.6 billion joint venture between Nestlé and US private equity firm Platinum Equity for its waters and premium drinks business.

The deal will see Nestlé transfer its waters and premium beverages business into a new standalone company, Peranel, which will comprise more than 30 brands sold across 120 countries, including San Pellegrino, Perrier, Acqua Panna and Pure Life.

The business will be headquartered in Paris, with Nestlé Waters & Premium Beverages chief executive Muriel Lienau becoming chief executive of Peranel once the deal completes.

Portfolio reshaping

Nestlé said the transaction values Peranel at an enterprise value of $5.6 billion (€4.9 billion), and expects to receive €3 billion in cash proceeds at closing while retaining a 50% stake in the business.

Platinum Equity managing director Igor Chacartegui said the joint venture will expand the brands' reach and support the continued organic growth of the iconic portfolio that “consumers know and trust around the world”.

The transaction remains subject to employee consultation procedures and regulatory approvals and is expected to complete during the first half of 2027.

Consumer deals

The deal marks another significant consumer goods mandate for Linklaters, following its roles advising Unilever on the separation and listing of its €8 billion ice cream business earlier this year and Tate & Lyle on its £2.7 billion takeover by US food giant Ingredion.

For Latham, the mandate follows another major consumer deal earlier this year, when the firm advised DoorDash on its £2.9 billion acquisition of Deliveroo.

Advising

Latham advised Platinum Equity with a team led by private equity partners David Brown (Washington, D.C.), Thomas Forschbach (London/Paris), Maarten Overmars (London) and Simon Lange (Paris).

Linklaters advised Nestlé led by M&A partner Namrata Shah (London), antitrust partner Pierre Zelenko (Paris) and TMT partner Greg Palmer (London).