THE FIRST EUROPEAN PACKAGING COMPANY TO BECOME AN INDEPENDENT COMPANY
CROWN HOLDINGS, INC. RETAIN A 20% OWNERSHIP INTEREST
A NEW COMPANY FOCUSED 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 the food, aerosol and promotional packaging business (the “EMEA food and consumer packaging business” or the “Company”) of Crown Holdings, Inc. (NYSE: CCK, “Crown”) for 2.25 billion euros (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 food and consumer packaging business EMEA is the largest manufacturer of steel and aluminum food packaging in Europe and is a leading manufacturer of aerosols and promotional packaging. The company is essential to the European food supply chain and has hundreds of global and regional food and consumer customers. The company’s products are highly durable and help prevent food waste and increase recycling rates. The EMEA food and consumer packaging business has around 6,300 employees in 44 factories in Europe, the Middle East and Africa, and generates an annual turnover of around 2.0 billion euros.
Michael psaros, Co-Founder and Associate Co-Director of KPS, said: “We are delighted to acquire one of the largest metal packaging companies in Europe. The size and scale of the company, the breadth of its products and its critical food safety technology and process disciplines developed over decades, coupled with growing end markets, form the basis of a great investment platform. We thank Mr. Donahue and Crown for their confidence in KPS and their confidence in our management of the extraordinary business they have built. We look forward to working constructively with all stakeholders in the business to build a new dynamic and successful business. KPS will leverage its decades of global manufacturing experience to create an entrepreneurial culture focused on innovation and continuous improvement, while providing the financial resources to invest in business and operational excellence and customer service. foreground. “
Timothy donahueCrown CEO said, “We are very pleased that the European Tinplate business has a strong owner in KPS Capital Partners to support future profitable growth and innovation initiatives. We are delighted to retain a minority stake in the business alongside KPS, as Crown shareholders will benefit from the KPS team and its track record of manufacturing business ownership and creating considerable value. “
Rothschild & Co acts as principal financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP acts as legal advisor to KPS and its subsidiaries. Barclays and UBS also act as financial advisers to KPS and its subsidiaries. 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 food and consumer packaging business EMEA is the largest manufacturer of steel and aluminum food packaging in Europe and is a leading manufacturer of aerosols and promotional packaging. The company is essential to the European food supply chain, with hundreds of global and regional food and consumer customers. The company’s products are highly durable, helping to prevent food waste and generate high recycling rates. With around 6,300 employees in 44 manufacturing plants in Europe, the Middle East and Africa, the EMEA Food and Consumer Packaging business generates annual sales of around 2.0 billion euros.
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 packaging products, equipment and services. transit and protection for a wide range of end markets. The global headquarters are located at 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 more than $ 12.3 billion of assets under management (from the 31st of December, 2020). For nearly three decades, KPS partners have worked exclusively to achieve meaningful capital appreciation by making controlling investments in manufacturing and industrial companies across a wide range of industries, including basic materials, branded consumption, health and luxury products, auto parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to improve businesses and generate returns on investment by structurally improving the strategic position, competitiveness and profitability of the companies in its portfolio, rather than rely mainly on financial leverage. The companies in the KPS Fund portfolio have total annual revenues of approximately $ 10.6 billion, operate 159 manufacturing plants in 22 countries and employ approximately 34,000 people, directly and through joint ventures around the world. KPS ‘investment strategy and portfolio companies are described in detail at www.kpsfund.com.
SOURCE KPS Capital Partners, LP