LEADING EUROPEAN PACKAGING BUSINESS TO BECOME INDEPENDENT
COMPANY
CROWN HOLDINGS, INC. TO RETAIN 20% OWNERSHIP INTEREST
NEW COMPANY TO FOCUS ON GROWTH IN FOOD AND CONSUMER PRODUCTS
MARKETS
NEW YORK, April 8, 2021 /PRNewswire/ -- KPS Capital
Partners, LP ("KPS") today announced that it has signed a
definitive agreement to acquire the Europe, Middle
East and Africa food,
aerosol and promotional packaging business (the "EMEA Food and
Consumer Packaging Business" or the "Company") from Crown Holdings,
Inc. (NYSE: CCK, "Crown") for €2.25 billion (approximately
$2.7 billion). Crown will retain 20%
ownership of the Company. The transaction is expected to close in
the third quarter of 2021 and is subject to customary closing
conditions and approvals.
The EMEA Food and Consumer Packaging Business is the largest
manufacturer of steel and aluminum food packaging in Europe and is a leading manufacturer of
aerosol and promotional packaging. The Company is critical to the
European food supply chain and has hundreds of global and regional
food and consumer products customers. The Company's products are
highly sustainable and help to prevent food waste and drive higher
rates of recycling. The EMEA Food and Consumer Packaging Business
has approximately 6,300 employees across 44 manufacturing
facilities in Europe, the
Middle East and Africa, and generates annual revenue of
approximately €2.0 billion.
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. We look forward to working constructively with all of
the business's stakeholders to build a vibrant and thriving new
company. KPS will leverage its decades of global
manufacturing experience to create an entrepreneurial culture
centered on innovation and continuous improvement, while providing
the financial resources to invest in commercial and operational
excellence and industry leading customer service."
Timothy Donahue, Chief Executive
Officer of 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 flavor
preservation that it offers. 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."
Rothschild & Co is acting as lead financial advisor and
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as
legal counsel to KPS and its affiliates. Barclays and UBS are also
acting as financial advisors to KPS and its affiliates. Debt
financing to support the transaction is being led by Barclays and
Deutsche Bank along with BNP Paribas, Credit Suisse and UBS
Investment Bank.
About the EMEA Food and Consumer Packaging
Business
The EMEA Food and Consumer Packaging Business is
the largest manufacturer of steel and aluminum food packaging in
Europe and is a leading
manufacturer of aerosol and promotional packaging. The Company is
critical to the European food supply chain, with hundreds of global
and regional food and consumer products customers. The Company's
products are highly sustainable, helping to prevent food waste and
drive high rates of recycling. With approximately 6,300 employees
across 44 manufacturing facilities in Europe, the Middle
East and Africa, the EMEA
Food and Consumer Packaging Business generates annual revenue of
approximately €2.0 billion.
About Crown Holdings, Inc.
Crown Holdings, Inc.,
through its subsidiaries, is a leading global supplier of rigid
packaging products to consumer marketing companies, as well as
transit and protective packaging products, equipment and services
to a broad range of end markets. World headquarters are located in
Yardley, Pennsylvania. For more
information, visit www.crowncork.com.
About KPS Capital Partners
KPS, through its affiliated
management entities, is the manager of the KPS Special Situations
Funds, a family of investment funds with over $12.3 billion of assets under management (as of
December 31, 2020). For nearly
three decades, the Partners of KPS have worked exclusively to
realize significant capital appreciation by making controlling
equity investments in manufacturing and industrial companies across
a diverse array of industries, including basic materials, branded
consumer, healthcare and luxury products, automotive parts, capital
equipment and general manufacturing. KPS creates value for its
investors by working constructively with talented management teams
to make businesses better, and generates investment returns by
structurally improving the strategic position, competitiveness and
profitability of its portfolio companies, rather than primarily
relying on financial leverage. The KPS Funds' portfolio companies
have aggregate annual revenues of approximately $10.6 billion, operate 159 manufacturing
facilities in 22 countries, and have approximately 34,000
employees, directly and through joint ventures worldwide. The KPS
investment strategy and portfolio companies are described in detail
at www.kpsfund.com.
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SOURCE KPS Capital Partners, LP