One Rock Capital, Metropoulos & Co. to acquire Nestlé Waters NA in $4.3 billion deal
Source One Rock Capital Partners LLC
One Rock Capital Partners LLC announced that one of its affiliates, in partnership with Metropoulos & Co., has entered into a definitive agreement to purchase Nestlé Waters North America. According to Reuters, the two private equity firms are paying $4.3 billion for the “struggling” North American bottled water brands.
Subject to customary closing conditions, the transaction is expected to be completed in the spring, at which time Dean Metropoulos will become the company's chairman and interim chief executive.
Based in Stamford, CT, with approximately 7,000 employees in the U.S. and more than 230 in Canada, the NWNA manages more than 18,000 acres of natural watershed areas. It currently sources water for six regional spring water brands from 38 active U.S.-located springs. NWNA is the world's largest bottled water company.
Among the Nestlé water brands being acquired are Poland Spring, Splash, Arrowhead and Pure Life, along with Deer Park, Ozarka and Zephyrhills, as well as ReadyRefresh, a customizable water and beverage delivery service.
According to Reuters, Perrier, S.Pellegrino and Acqua Panna, which contributed to the growth recovery of Nestlé’s North American water business in the third quarter, are not part of the sale agreement.
"Nestlé Waters North America's iconic brands have earned the trust and preference of consumers everywhere due to an uncompromising commitment to quality,” said One Rock managing partner Tony W. Lee. “We are excited to further this commitment and build upon the market leadership of the business alongside the company's talented management team."
Dean Metropoulos, founder of his family-owned investment firm, is an industry veteran with a successful 40-year track record of transforming and reinvigorating numerous food and beverage brands, including Hostess Brands and Pabst Brewing Co.
"I am pleased to have the opportunity to lead NWNA as it enters the next phase of evolution," Metropoulos said. "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."
