VEVEY, Switzerland — Nestle S.A. is selling Nestle Waters North America (NWNA) for $4.3 billion to One Rock Capital Partners LLC in partnership with Metropoulos & Co.
Nestle S.A.’s international premium brands, including Perrier, S.Pellegrino and Acqua Panna, are not part of the deal, which includes selling its regional spring water brands, purified water business and beverage delivery service in the United States and Canada.
The companies expect to complete the sale in the spring, at which time Dean Metropoulos will become the company’s chairman and CEO. Founder of his family-owned investment firm, Metropoulos is an industry veteran who has worked with food and beverage brands like Hostess Brands and Pabst Brewing Co.
“I am pleased to have the opportunity to lead NWNA as it enters the next phase of evolution,” Metropoulos said. “This is an important inflection point for the business as it transitions to an independent company, and I look forward to collaborating with One Rock and NWNA’s management team to deliver unparalleled value to our customers.”
Nestle, Vevey, Switzerland, said in June it was considering selling most of its NWNA business to focus on its international brands that have been timeless performers in the waters portfolio. NWNA’s business, excluding international brands, took in sales of about $3.4 billion in 2019. Nestle’s global Waters sales amounted to $7.8 billion in 2019. The portfolio includes 48 water brands and a tea brand across five continents.
"We continue to transform our global waters business to best position it for long-term profitable growth,” Mark Schneider, Nestle CEO, said. “This sale enables us to create a more focused business around our international premium brands, local natural mineral waters and high-quality healthy hydration products. We will also boost our innovation and business development efforts to capture emerging consumer trends, such as functional water."
Specific brands included in the sale are Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Pure Life and Splash.
“One Rock brings to bear extensive corporate carve out and operational capabilities that we believe will be instrumental to NWNA’s ongoing success as a standalone company,” One Rock Managing Partner R. Scott Spielvogel said. “We look forward to working closely with our operating partners to accelerate the growth of NWNA’s extraordinary set of attractive brands, while continuing to create value in the communities in which the company operates.”
One Rock, New York, makes controlling investments in companies with potential for growth and operational improvement. It works collaboratively with its operating partners to develop a comprehensive business plan focused on growing the enterprise and its profitability to enhance long-term value, according to the company.
Metropoulos & Co. leverages extensive industry knowledge, operational expertise and flexible capital to revive and reimagine brands and businesses in the food and beverage, consumer products and other diversified sectors, the Greenwich, Conn.-based company said.