Nestle sells 50% of waters business to Platinum Equity

New joint venture Peranel valued at €4.9 billion

Nestle, the Swiss food and beverage company, said Thursday it had reached an agreement with private equity firm Platinum Equity to create a joint venture and sell a 50% stake in its Waters and Beverages unit. The new business, named Peranel, is valued at €4.9 billion ($5.59 billion) including cash and debt, according to a report from The Wall Street Journal.

The transaction covers Nestle’s waters business. The deal is part of Nestle’s stated effort to slim down and revive profits, according to the company.

Platinum Equity, a private equity firm, will take a 50% ownership stake in the joint venture alongside Nestle, according to the report.