The divested business manufactures food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands
KPS Capital has agreed to acquire Crown’s European tinplate business. (Credit: Gerd Altmann from Pixabay)
KPS Capital Partners has agreed to acquire European tinplate business from Crown Holdings in a deal valued at €2.25bn.
Under the deal, KPS will acquire Crown’s Europe, Middle East and Africa food, aerosol and promotional packaging business. Crown will retain a 20% ownership interest in the business.
The business manufactures food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands.
Crown CEO Timothy Donahue 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.”
With around 6,300 employees, the European tinplate business consists of 44 manufacturing facilities in 17 countries in Europe, the Middle East and Africa.
Last year, the divested business reported €1.9bn in revenue and around €220m in estimated standalone EBITDA.
KPS co-founder and co-managing director Michael Psaros 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.”
Subject to customary closing conditions and approvals, the deal is expected to be completed in the third quarter of this year.
Rothschild & Co is serving as lead financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is acting as legal counsel to KPS and its affiliates on the transaction.
Barclays and UBS are also serving as financial advisors to KPS and its affiliates, while Evercore is serving as exclusive financial advisor to Crown.
Last month, KPS Capital agreed to acquire the global aluminium rolling business from the Norway-based Norsk Hydro ASA (Hydro) for €1.38bn.