Photo/Jim Neuger
Historic Poland Spring water bottles on display at the Poland Spring Preservation Society, photographed in Oct. 2020.
February 18, 2021
Poland Spring, other Nestlé water brands sold to investment firms for $4.3B
File photo / Lori Valigra
Poland Spring is one of several North American brands being sold by Nestlé in a deal announced on Wednesday.
Swiss food conglomerate Nestlé SA has agreed to sell several North American regional spring water brands, including Maine-based Poland Spring, to a pair of private equity firms for $4.3 billion.
The buyers are an affiliate of One Rock Capital Partners LLC, a New York-based investment firm focused on high-potential middle market businesses, and Metropoulos & Co., a family-owned backer of several food and beverage brands including Hostess Brands, Utz snacks, Pabst Brewing Co. beer and Ghirardelli Chocolates.
A spokesman for Nestlé was not immediately available to comment on interest from other potential suitors or when talks with that led to the transaction began. Coca-Cola Co. and PepsiCo Inc. had previously been cited by Bloomberg News as potential buyers for the brands.
Nestlé Waters North America, based in Stamford, Conn., has owned Poland Spring since 1992 when it took over Perrier Water Co.
Wednesday's agreement comes about a year and a half after Nestlé said it was exploring the potential sale of most of its North American mass-market bottled water business to sharpen its global water portfolio focus on premium brands. At the time, it said it was looking to invest in the "healthy hydration" niche, such as functional water products, via acquisitions.
'A more focused business'
Besides Poland Spring, the sale agreed this week includes the Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Pure Life and Splash natural spring water brands, which had 2019 combined sales of 3.4 billion Swiss francs, or around $3.8 billion. It also includes the U.S. direct-to-consumer and office beverage delivery service ReadyFresh.
Poland Spring sources its water from 10 locations, primarily in western Maine, with bottling plants in Poland, Hollis and Kingfield, and employs more than 800 people in the state.
As expected, international premium brands including Perrier, S.Pellegrino and Acqua Panna are not part of the Nestlé deal.
Commenting on the deal, Nestlé CEO Mark Schneider said, "We continue to transform our global waters business to best position it for long-term profitable growth. This sale enables us to create a more focused business around our international premium brands, local natural mineral waters and high-quality healthy hydration products. We will also boost our innovation and business development efforts to capture emerging consumer trends, such as functional water."
Nestlé on Wednesday also reiterated its commitment to make its entire water portfolio carbon-neutral by 2025. In 2020, Nestlé announced renewed sustainability commitments which build on existing efforts to enhance water stewardship and tackle plastic waste.
In a separate press release, the buyer said that the deal is subject to customary closing conditions and is expected to be completed this spring.
Tony W. Lee, managing partner of One Rock, said, “Nestlé Waters North America’s iconic brands have earned the trust and preference of consumers everywhere due to an uncompromising commitment to quality. 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 reputation for reviving faltering companies.
Once the Nestlé deal is completed, he is set to become chairman and interim CEO of Nestlé Waters North America, which employs around 7,000 people in the United States and more than 230 people in Canada.
Metropoulos said he is pleased to have the opportunity to lead the company as it enters its next chapter.
"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 [Nestlé Waters North America's] management team to deliver unparalleled value to our customers," he added.
Nestlé results and full-year outlook
Nestlé shares are traded on the Zurich-based Swiss Stock Exchange under the symbol NESN.
By late afternoon local time Thursday, shares were down 0.81% at 99.55 Swiss francs, for a market value of around 286.8 billion Swiss francs ($319.79 billion).
In its latest earnings report released Thursday, the Vevey, Switzerland-based company reported a 3.6% increase in organic growth and projected a continued increase in organic sales growth in 2021 towards a mid single-digit rate.
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Anonymous
July 4, 2021
Yes I have some insight to share. Your question has legitimacy. It is a hot potato.
So hot the state of Maine's current leadership has suppressed this story on the state level with the assistance of Rep. Pingree / Sen. King / Gov. Mills taking the cake/ Efforts by their own Democratic members hastily administrated in terms of transparency and cooperation have received more public attention here in Maine by this state's conservatives and Republicans/ maintaining and sustaining
their RNC / GOP memberships/ paying attention to what is coinciding with this huge exposure/uncovering of fraudulent business behavior in terms of quality and value numbers disclosed on Wall Street against the other side: buyers or sellers?
Makes no difference to the CPO at Nestle or their board, but what is important to them is getting the Nestle family name away from anything to do with this criminally liable behavior on the part of Poland Springs of Maine, Connecticut Water, Clinton, CT, and Central Maine Power Company, Augusta, ME/ now broad brush these inextricable facts as you choose, and see for yourself the CMP Corridor to Canada Project in Maine is default here and in charge of all $$ currently being ponyed up for large capital projects such as this and others, ie. Maine Water Rights, etc. so it all under the command an unqualified governor who adjusted the election laws in Maine days prior to her announcement. The rest is easy here, moreover regardless of the way any us may lean politically, it is imperative for all to relearn how to agree to disagree civilly and respectfully on these and all matters of importance to " the people " and not the portfolios of a few, who know who they are, and to obey and respect the integrity of all US Laws in place, not just Maine.
Workers affected? Any comments?
Anonymous
February 18, 2021
I'm assuming this change of ownership will have no adverse affect on the employee's jobs in Maine; does anyone have additional insight on that?
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