CD&R and Platinum are the only sponsors left bidding for a 50% stake in Nestlé’s €5bn bottled water business in the final stretch of the sales process, according to 9fin sources.
PAI has dropped out of the race, they added.
During the sales process, bidders have been restricted from talking to bank lenders arranging tailored debt packages, a rare occurrence in LevFin deals, as previously reported.
Private credit lenders are circling the asset to provide a potential junior tranche, structured as PIK debt. This would bring additional leverage of 1x EBITDA, or €500m, below the broadly syndicated tranche, as previously reported.
Bidders can also count on a staple debt package prepped by Deutsche Bank, which could lever the unit at 5.75x, as reported by Octus.
Deutsche Bank and Rothschild are advising on the sales process, as previously reported by Bloomberg.
Water controversies
Nestlé has faced heavy regulatory and public scrutiny since early 2024, when an investigation by Le Monde and Radio France revealed that mineral water sold by at least a third of France-based brands, including subsidiaries of Nestlé, had been illegally treated.
More recently, a report by a parliamentary investigative commission published last month concluded...
