PHILADELPHIA, Sept. 1, 2014 /PRNewswire/ -- Crown
Holdings, Inc. (NYSE: CCK), a global leader in consumer packaging,
today announced that it has entered into a definitive agreement to
acquire EMPAQUE, a leading Mexican manufacturer of aluminum cans
and ends, bottle caps and glass bottles for the beverage industry,
from Heineken N.V., in a cash transaction valued at $1.225 billion, subject to adjustment. The
acquisition is subject to customary closing conditions, including
competition authority approval, and is expected to close by year
end 2014 and contribute between $0.15 and
$0.20 per share to Crown's 2015 earnings before synergies,
but including estimated amortization and depreciation for purchase
accounting adjustments. Information regarding the expected
amount and timing of synergies will be provided in due course.
According to Crown Chairman and Chief Executive Officer
John W. Conway, the acquisition of
EMPAQUE will significantly enhance Crown's strategic position in
beverage cans, both regionally and globally. In North
America, Crown will become the second largest beverage can
producer, supplying over 24 billion units annually to a balanced
portfolio of beer and soft drink customers. On a worldwide
basis, after closing Crown will supply over 62 billion units
annually, representing 20% of all beverage cans globally.
Crown will also bolster its already industry-leading geographic
footprint, as over 50% of beverage can revenue will be attributable
to the faster growing developing regions. Long-term supply
agreements with Heineken affiliates will also provide a stable
cash-flow base for the EMPAQUE business in Mexico.
With projected 2014 sales of approximately $700 million and EBITDA of approximately
$150 million, EMPAQUE,
headquartered in Monterrey,
Mexico, currently operates two beverage can plants, a plant
that manufacturers beverage can ends, aluminum closures and bottle
caps, a glass bottle plant and a glass service facility in
Mexico, with a total of
approximately 1,500 employees.
Commenting on the transaction, Conway said, "We are excited to
acquire EMPAQUE and its excellent, well-managed facilities.
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."
Citigroup Global Markets Inc. acted as financial advisor to
Crown and provided committed financing for the transaction.
About Crown Holdings, Inc.
Crown Holdings, Inc.,
through its subsidiaries, is a leading supplier of packaging
products to consumer marketing companies around the world. World
headquarters are located in Philadelphia,
Pennsylvania. For more information, visit
www.crowncork.com.
Cautionary Note Regarding Forward-Looking
Statements
Except for historical information, all other
information in this press release consists of forward-looking
statements. These forward-looking statements involve a number of
risks, uncertainties and other factors, that may cause actual
results to be materially different from those expressed or implied
in the forward-looking statements, including that the transaction
is subject to a number of conditions; the Company's ability to
close the transaction in 2014, or at all; the ability of the
EMPAQUE business to achieve projected sales and EBITDA estimates in
2014; whether the transaction will be approved by the Mexican
Antitrust Authority or other competition authorities; whether the
transaction will be accretive to the Company's earnings in 2015;
the accuracy of estimated amortization and depreciation amounts;
the Company's ability to successfully integrate the acquisition of
EMPAQUE and realize synergies; the Company's ability to generate
positive cash-flows from supply agreements with Heineken
affiliates; the accuracy of estimates of the Company's post-closing
beverage can volumes and market position; and the level of future
customer demand for beverage cans, ends, crowns and glass
bottles in Mexico. Important
factors that could cause the statements made in this press release
or the actual results of operations or financial condition of the
Company to differ are discussed under the caption "Forward Looking
Statements" in the Company's Form 10-K Annual Report for the year
ended December 31, 2013 and in
subsequent filings made prior to or after the date hereof. The
Company does not intend to review or revise any particular
forward-looking statement in light of future events.
For more information, contact:
Thomas A. Kelly, Senior Vice
President and Chief Financial Officer, (215) 698-5341
Thomas T. Fischer, Vice President
Investor Relations and Corporate Affairs, (215) 552-3720
SOURCE Crown Holdings, Inc.