Nestle agreed to sell a 50% stake in its Waters and Beverages unit to private equity firm Platinum Equity, creating a joint venture named Peranel. The deal values the new business at 4.9 billion euros ($5.59 billion) including cash and debt.

The Swiss food giant said the transaction is part of its strategy to slim down operations and revive profitability. Peranel will operate as a standalone entity with its own management team, combining Nestle's water brands with Platinum Equity's operational expertise.

The joint venture includes Nestle's premium water brands such as S.Pellegrino, Perrier, and Acqua Panna, along with its mainstream local brands. Nestle will retain the other 50% stake and continue to consolidate the business in its financial statements.

The transaction is expected to close in the second half of 2024, subject to regulatory approvals and customary closing conditions.