Nestlé Waters North America and its Ice Mountain bottled water operations in Michigan are being sold to a pair of New York private equity firms.
One Rock Capital Partners LLC and Metropoulos & Co. announced an agreement to purchase Nestlé Waters North America for a reported $4.3 billion, according to the Nestlé press release.
The sale to One Rock Capital Partners and Metropoulos & Co. includes brands such as Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead and Splash, as well as U.S. office beverage delivery service ReadyRefresh, reported Reuters.
Perrier, S.Pellegrino and Acqua Panna are not part of the sale agreement.
Dean Metropoulos, founder of Metropoulos & Co, would become Nestle Waters North America’s chairman and interim chief executive officer after the deal closes, reported Reuters.
According to the Detroit Free Press, Michigan Citizens for Water Conservation, a grassroots nonprofit, has contested the water withdrawals and litigated against Nestlé. The nonprofit maintains that despite the findings of state regulators, Nestlé's groundwater extraction is having ongoing negative impacts to local streams and wetlands.
In November 2020, the EGLE dismissed an appeal of its permit to Nestlé in 2018 to pump more water from its bottled water facility in Osceola County, Michigan, which was made by the Michigan Citizens group and the Grand Traverse Band of Ottawa and Chippewa Indians, according to the state’s website.
"We continue to transform our global waters business to best position it for long-term profitable growth,” said Mark Schneider, Nestlé CEO in the press release. “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."
