Crown Holdings gives its EMEA European Tinplate Business to KPS
Click on image to download high resolution version
By Shradha Mishra, deputy editor
An American company, Crown holdings that specializes in making metal beverage and food cans has recently announced a definitive agreement to sell its European tinplate business to investment firm KPS Capital Partners, LP.
Crown will receive pre-tax proceeds of approximately 1.9 billion EUR (2.29 billion USD) from the transaction and will retain a 20 percent 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 EUR (2.29 billion USD) in revenue and approximately 220 million EUR (264 million USD) in estimated standalone EBITDA and had approximately 6,300 employees.
Timothy J. Donahue, president and CEO of Crown Holdings, 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 flavor 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.’
The sale of the European tinplate business is expected to close during the third quarter of 2021 and is subject to certain regulatory approvals and customary closing conditions.
Evercore acted as exclusive financial advisor to Crown.