Crown announces sale of its European Tinplate business
Image: Crown
Crown Holdings Inc has announced that it has agreed to sell its European Tinplate business to KPS Capital Partners, LP.
Crown will receive pre-tax proceeds of approximately €1.9 billion from the transaction and will retain a 20% ownership stake in the business.
The European Tinplate business comprises 44 manufacturing facilities in 17 countries in Europe, the Middle East and Africa which produce food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands. In 2020, the business generated €1.9 billion in revenue and approximately €220 million in estimated standalone EBITDA and had approximately 6,300 employees.
Timothy J Donahue, president and chief executive officer at Crown, said: “We are very pleased that the European Tinplate business will have a strong owner in KPS Capital Partners to support future profitable growth and innovation initiatives. European customers and consumers alike have long embraced metal packaging, valuing the premium product protection and flavour preservation that it offers. The infinitely recyclable food can is unrivaled from a sustainability standpoint, helping eliminate over one billion liters a year in food waste. We are excited to retain a minority stake in the business alongside KPS as Crown shareholders will benefit from the KPS team and its track record of owning manufacturing companies and creating tremendous value.”
Michael Psaros, co-founder and co-managing partner of KPS, said: “We are excited to acquire one of the largest metal packaging businesses in Europe. The size and scale of the business, the breadth of its products and its critical food safety technology and process disciplines developed over decades, coupled with growing end-markets, are the foundation of a tremendous investment platform. We thank Mr Donahue and Crown for their confidence in KPS and trust in our stewardship of the extraordinary business they have built.”
Crown expects to use the net proceeds, after closing working capital adjustments, taxes and other transaction related costs, to further reduce debt, fund capital projects and repurchase shares over time under its recent $1.5 billion authorisation dated 25 February 2021.
The sale of the European Tinplate business is expected to close during the third quarter of 2021.
