Crown Holdings To Buy Heineken's Mexican Packaging Unit For $1.225 Bln Cash

02-Sep-2014 - Netherlands

Packaging products company Crown Holdings, Inc (CCK) Monday said it has entered into a definitive agreement with Dutch brewer Heineken N.V. (HINKY.PK) to buy its packaging businesses Empaque in Mexico for a cash consideration of $1.225 billion.

The transaction is expected to contribute between $0.15 and $0.20 per share to Crown's 2015 earnings before synergies, but will include estimated amortization and depreciation for purchase accounting adjustments.

Empaque manufactures aluminum cans and ends, bottle caps and glass bottles for the beverage industry. The deal is scheduled to close by the end of this year.

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Crown's chairman and chief executive officer John Conway said, "This transaction will allow us to expand our presence in the growing Mexican market, significantly strengthen our global beverage packaging business and deliver compelling benefits to shareholders."

Crown Holdings believes it will become the second largest beverage can producer in North America, and expects to supplying over 24 billion units annually to a balanced portfolio of beer and soft drink customers.

Worldwide, Crown anticipates supplying over 62 billion units annually, representing 20 percent of all beverage cans globally.

For 2014. Empaque projects sales of about $700 million and EBITDA of around $150 million. Monterrey, Mexico-headquartered Empaque, with nearly 1,500 employees, currently operates two beverage can plants, a plant that makes beverage can ends, aluminum closures and bottle caps, a glass bottle plant and a glass service facility in Mexico.

Further, Crown Holdings said its long-term supply agreements with Heineken affiliates will also provide a stable cash-flow base for the Empaque business in Mexico.

Citigroup Global Markets Inc. acted as financial advisor to Crown and provided committed financing for the deal.

In April end, Crown Holdings had completed its acquisition of Mivisa Envases, SAU, a Spanish manufacturer of two- and three-piece food cans and ends. For the recent second quarter, the company's net sales grew to $2.38 billion from $2.22 billion in 2013, mainly due to the impact of Mivisa acquisition and increased global beverage can unit sales.

CCK closed Friday's regular trading at $48.27, up 0.25 percent. (dpa-AFX)

https://www.yumda.com/en/news/1143639/crown-holdings-to-buy-heineken-s-mexican-packaging-unit-for-1-225-bln-cash.html