The food industry giant Nestle on Tuesday finalized a 155 million Swiss franc (128.3 million dollar) acquisition of the Swiss bottled water factory Henniez, as part of its strategy for rapid expansion in this market segment.
Nestle, the world’s largest food company, announced that it will first purchase a 62 percent stake in the popular Swiss šorces Minerales Henniez from the Rouge family for 3,000 šwiss francs per share. This acquisition will enable Nestle to triple its revenues in the domestic šwiss market. The bottled water segment accounts for about 10 percent of the group’s total revenue and is one of its key foundations for growth, as natural, unsweetened beverages have become a consumer trend favorite.
Nestle will offer the remaining listed shares of the family company Henniez through a public tender at a price of 5,303 francs per share, which is lower than their closing price on Monday of 5,340 francs, the company stated. “This move is clearly part of Nestle’s strategy to be present in all good mineral water markets with strong brands,” said the company’s spokesperson Francois-Xavier Perroud. According to data from the news agency Reuters, the total market value of Henniez is 213 million francs. This move will increase Nestle’s share of the šwiss bottled water market to 25 percent. Henniez generated revenues of 152 million francs in 2006, while Nestle’s šwiss bottled water business generated revenues of 77 million francs. (H)
