Nestlé S.A. recently announced that it has reached an agreement to sell its regional spring water brands, purified water business and beverage delivery service in the U.S. and Canada to One Rock Capital Partners in partnership with Metropoulos & Co. for $4.3 billion.
The Company's international premium brands including Perrier, S.Pellegrino and Acqua Panna are not a part of the deal. The transaction is expected to close following the completion of customary closing conditions.
The sale includes the following brands in the U.S. and Canada, which had sales of around $3.7 billion in 2019: Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Pure Life and Splash. It also includes the U.S. direct-to-consumer and office beverage delivery service ReadyRefresh.
"We continue to transform our global waters business to best position it for long-term profitable growth,” Nestlé CEO Mark Schneider 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."
According to CBS, Conservation groups have challenged Nestlé's permits to draw water from rural wells in Michigan, saying the producer's methods are unsustainable and a danger to the ecosystem. Nestlé officials say they employ natural resource managers to ensure the operations are sustainable.
Groups have also criticized Nestlé's use of spring water from federal land in California.