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Nestlé to Spin Off Water Unit into EUR4.9 Billion JV as H1 Results Show Broad-based Organic Growth

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Nestlé to Spin Off Water Unit into EUR4.9 Billion JV as H1 Results Show Broad-based Organic Growth

Nestlé (NESN.SW) on Thursday announced plans to spin off its water and premium beverage brands into a joint venture as part of its ongoing restructuring.

The Swiss packaged food and drinks giant and US-based private equity investor Platinum Equity will equally own the new entity called Peranel, which will have an enterprise value of 4.9 billion euros. Subject to employee consultations and regulatory approvals, the transaction is expected to close in the first half of 2027 and yield Nestlé 3 billion euros in cash proceeds.

Headquartered in Paris and led by current unit Chief Executive Officer Muriel Lienau, Peranel will manage a portfolio of over 30 brands, including S.Pellegrino, Source Perrier and Acqua Panna.

"Peranel represents a remarkable collection of iconic brands that consumers know and trust around the world," Platinum Equity Managing Director Igor Chacartegui said. "We look forward to working alongside Nestlé, Muriel and her team to expand Peranel's reach and support its continued organic growth. We'll also bring our M&A capabilities to help build upon and sharpen Peranel's existing portfolio."

Separately, Nestlé reported first-half 2026 organic growth of 3.6%, above the previous year's 2.9%. Performance was underpinned by real internal growth of 1.5% and pricing contributions growth of 2.1%, against the first-half 2025 increases of 0.2% and 2.7%, respectively.

Reported sales dipped to 43.11 billion francs from 44.23 billion francs previously, amid a 6.2% negative impact from foreign exchange shifts. Broad-based category growth for the interim period was led by coffee, with an organic growth of 7.5%.

"Emerging markets growth accelerated, and we delivered solid performance in developed markets. We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest. While the external environment remains uncertain, we are taking actions to accelerate consistent growth," Nestlé CEO Philipp Navratil said.

Looking ahead, the company still forecasts organic growth between 3% and 4% for 2026 and free cash flow of more than 9 billion francs.

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