Investing.com -- Nestlé SA (OTC: NSRGF )’s water business, which could be valued at around $5.4 billion, is seeing interest from buyout firms PAI Partners and Bain Capital, according to Bloomberg, citing individuals familiar with the situation. Clayton Dubilier & Rice and KKR & Co (NYSE: KKR ). are also reportedly examining the unit. Insiders have stated that Nestlé may keep a stake in the business following any potential transaction.

The company is likely to engage investment banks in the coming days to advise on options for the water unit. These talks are ongoing and may not necessarily lead to a deal. Representatives for Nestlé, Bain, CD&R, KKR, and PAI have declined to comment on the matter.

Late last year, Nestlé CEO Laurent Freixe declared plans to separate the water business, which includes brands such as Perrier, S.Pellegrino, and Acqua Panna. This decision came as the unit’s organic growth has slowed in recent quarters. The water business, which accounts for less than 4% of Nestlé’s total revenue, has been grappling with contamination issues and supply constraints.

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