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(Sharecast News) - Swiss consumer goods firm Nestle said on Thursday that it has agreed to sell half its water and beverage business to US private equity firm Platinum Equity for 3bn.
Together, the two companies will create Peranel, a joint venture for Nestle's water and premium beverages business, "designed to establish a dedicated player with strengthened focus to drive growth in a dynamic category".
Peranel will include brands such as San Pellegrino, Source Perrier and Acqua Panna.
The deal, which is expected to close in the first half of next year, is subject to employee consultation processes and applicable regulatory approvals.
Nestle chief executive Philipp Navratil said: "By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility.
"Through additional focus, it will be well equipped to drive its long-term growth ambitions by strengthening this unique portfolio of international and local brands, with continued investments in innovation, premiumisation, operational excellence and sustainability."
Platinum Equity has around $48bn of assets under management.
News of the deal came alongside Nestle's half-year results, which showed that net profit fell 31.4% to CHF3.5bn, driven by increased restructuring costs and the write-down of assets held for sale.
At 1033 BST, the shares were down 7% at CHF80.09.
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