Nestle SA agreed to sell its bottled-water business in the U.S. and Canada to private-equity firm One Rock Capital Partners for $4.3 billion
The announcement comes after Nestle in June said it would conduct a strategic review of its North American waters division and sharpen the focus of its global water portfolio.
About Nestle-North America
Headquartered in Stamford, Connecticut, Nestle Waters North America has about 7,000 employees in the United States and 27 production facilities across North America.
Nestle Waters has a 25-year history in the Lehigh Valley, during which its employment here has increased by more than 500%
In 1995, the company opened its first Lehigh Valley bottling plant with about 75 employees.
About a decade later, Nestle Waters spent $116 million to expand and build its second local facility: a 580,000-square-foot bottling plant. The two plants’ combined payroll represents more than $36 million.
About Sale Agreement
The sale agreement includes the sale of all of Nestle Waters North America’s U.S. factories, warehouses, offices and branches. That includes the company’s two Breinigsville bottling facilities, which employ about 500 workers.
The plants produce Deer Park spring water and Nestle Pure Life bottled water, which are then distributed to major retail and grocery customers throughout Pennsylvania and the mid-Atlantic.
The deal does not include Nestle’s premium brands Perrier, S.Pellegrino and Acqua Panna.
Transaction Completion
The transaction is expected to be completed in the spring, subject to customary closing conditions.
New CEO/Chairman
Once the deal is complete, Dean Metropoulos will become chairman and interim CEO of the bottled water business acquired from Nestle.
Who is Dean Metropoulos?
Metropoulos is the founder of Metropoulos & Co., an investment firm that focuses on businesses in the food and beverage and consumer products sectors.
Metropoulos has a net worth of $2.7 billion, according to Forbes, and is best known for his involvement in reinvigorating Hostess Brands.
Comment from Metropoulos
“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.”
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