PAI Partners has stepped away from the competitive process to acquire a stake in Nestle SA's bottled water operations, according to people briefed on the matter. The portfolio includes well-known labels such as Perrier and S.Pellegrino.
The European buyout firm had been viewed as a leading contender, reflecting a longstanding commercial relationship with Nestle that also spans a jointly held ice cream venture. Sources say PAI is no longer pursuing a stake in the water business.
At present, Clayton, Dubilier & Rice and Tom Gores' Platinum Equity remain active in the pursuit of a 50% interest in the unit. Meanwhile, KKR & Co. recently exited the process, according to the same people.
Nestle disclosed late in 2024 that it would separate its water business into a distinct unit. As the sale process advances, some prospective buyers have expressed concerns about restrictive conditions that limit data access for banks that would provide financing for the transaction, the people said.
The Swiss consumer goods company has been seeking a price in the vicinity of e55 billion, the people added, an amount that has shaped bidder interest and the financing discussions surrounding the deal.
The withdrawal of PAI from the auction alters the competitive landscape for the planned transaction. With two private equity groups remaining and at least one major firm having already left the process, the pool of potential partners for Nestle's water unit has narrowed, while negotiators continue to address financing and data access conditions raised by bidders.
As the sale progresses, the combination of valuation expectations and constraints around information-sharing for lenders are factors that market participants are watching closely. Nestle's goal to secure a transaction for a sizeable portion of its water assets remains clear, even as the roster of interested buyers shifts.