Nestlé has formally launched the sale of a stake in its water business, one of the largest consumer carve-outs in Europe. The unit, housing Perrier and S.Pellegrino, is valued at about €5bn. First-round bids are due this month, with Rothschild advising.

The sale follows a 2024 decision to separate the division, revived after CEO Philipp Navratil took charge. Lenders are preparing €2bn-€3bn in leveraged loans, likely four to six times EBITDA. The business generates roughly €500m in earnings, making it attractive despite bottled water's environmental scrutiny.

Private equity firms including PAI Partners, Blackstone, KKR, Bain Capital, and Clayton Dubilier & Rice have expressed interest. The deal adds to a pipeline of large European carve-outs, as sponsors deploy dry powder amid improved market sentiment.