KKR drops out of the race for Nestle's water brands - report

(Sharecast News) - Private equity firm KKR has reportedly dropped out of the multibillion pound auction for Nestle's bottled water brands.

According to Sky News, KKR will not take further part in a sale process orchestrated by Nestle. Sources told Sky that formal bids for a 50% stake in the division, which includes the Acqua Panna, Perrier and San Pellegrino brands, were due in the first half of June.

KKR's withdrawal leaves rival buyout firms including PAI Partners, Platinum Equity and Clayton, Dubilier & Rice as the remaining bidders.

Butterfly Equity, a Los Angeles-based investor specialising in the food sector, was also said to have expressed preliminary interest in a deal, as has Chinese investment firm Primavera.

The auction of a stake in Nestle's water unit is expected to value the overall business at about €5bn.

PAI has previously partnered with the Swiss consumer goods giant in a similar structure at its ice cream business, which is now named Froneri.

Sky said CD&R and Platinum are also said to be strong contenders to secure a deal, with a binding agreement likely to be struck during the summer.