In March 2021, Nestlé Waters, a branch of the multinational Swiss food and beverage company, was sold to One Rock Capital Partners LLC. One Rock is a private equity company that focuses on purchasing and investing in industrial, manufacturing, and distribution companies in the middle market. Along with its Pure Life and Poland Spring brands, Nestlé Waters’ activities in the US and Canada are included in the deal.
In an effort to concentrate on its core operations, which include coffee, pet food, and bottled water in other parts of the world, Nestlé decided to sell Nestlé Waters. Activist investors had been pressuring the corporation to sell off its non-core assets and enhance its financial performance. Due to dwindling sales and growing competition from less expensive and more environmentally friendly bottled water alternatives, Nestlé Waters had been having trouble lately.
One Rock Capital Partners intends to run Nestlé Waters as a stand-alone business and to invest in its expansion and sustainability programs. In order to lessen Nestlé Waters’ operations’ impact on the environment, the new owners have said that they will prioritize recycling and lowering the use of plastic. Additionally, they want to increase the company’s product line and distribution options.
Given that Nestlé Waters had recently been a drain on the company’s profitability, the sale of the division is anticipated to improve Nestlé’s financial performance. Although the transaction price was not made public, analysts believe it to have been close to $4.3 billion. By repurchasing shares and paying dividends to shareholders, Nestlé will use the sale profits to bolster its core operations.
As part of Nestlé’s plan to concentrate on its core operations, Nestlé Waters has been sold to One Rock Capital Partners LLC. The transaction is anticipated to enhance Nestlé’s financial performance and free up funds for key investments. One Rock Capital Partners intends to run Nestlé Waters as a stand-alone business and to invest in its expansion and sustainability programs. As the new owners concentrate on lowering the company’s environmental effect and increasing its product options, we can anticipate changes to Nestlé Waters’ operations.