Crown Holdings Announces Acquisition Of Heineken Packaging Businesses In Mexico - KMPH FOX 26 | Central San Joaquin Valley News Source

Crown Holdings Announces Acquisition Of Heineken Packaging Businesses In Mexico

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Crown Holdings, Inc.

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

©2012 PR Newswire. All Rights Reserved.

  • Local NewsLocal NewsMore>>

  • Buchanan High School Student Shot Accidentally By Hunter In Woods

    Buchanan High School Student Shot Accidentally By Hunter In Woods

    A 17-year-old Buchanan High School student is still in a bay area intensive care unit after a hunter accidentally shot him over the weekend.The family of Jim Moua says he was hunting squirrels with his father and little brother in the hills of Monterey County Saturday morning.The family says another hunter mistakenly shot him with a shotgun.He was airlifted to a San Jose hospital.Family members say he was hit with more than a dozen pellets of buck shot including 1 in his stomach and 10 in hi...More >>
    A 17-year-old Buchanan High School student is still in a bay area intensive care unit after a hunter accidentally shot him over the weekend.The family of Jim Moua says he was hunting squirrels with his father and little brother in the hills of Monterey County Saturday morning.The family says another hunter mistakenly shot him with a shotgun.He was airlifted to a San Jose hospital.Family members say he was hit with more than a dozen pellets of buck shot including 1 in his stomach and 10 in hi...More >>
  • Murder Suspect Shot, Killed By Fresno Police

    Murder Suspect Shot, Killed By Fresno Police

    Fresno Police tell KMPH Fox26 News and kmph.com that a man has been shot by an officer. It happened at an apartment complex near Clinton and First Ave, in Fresno.. The north bound lanes of First are blocked from Yale to Clinton. KMPH Fox26 News is there and waiting for a Police spokesperson to brief us on the details. Police say the man was wanted for a crime he is charged with committing.More >>
    Fresno Police tell KMPH Fox26 News and kmph.com that a man has been shot by an officer. It happened at an apartment complex near Clinton and First Ave, in Fresno.. The north bound lanes of First are blocked from Yale to Clinton. KMPH Fox26 News is there and waiting for a Police spokesperson to brief us on the details. Police say the man was wanted for a crime he is charged with committing.More >>
  • Baldness Linked To Prostate Cancer

    Baldness Linked To Prostate Cancer

    Baldness could be a sign of prostate cancer. That's according to a new study from the National Cancer Institute.The study found men who had male pattern baldness at age 45 were 40% more likely to develop an aggressive form of prostate cancer when they got older.The study's author suspects the link is due to changes in hormone levels.Nearly 70% of men experience male–pattern baldness which is described as having a receding hairline and thinning hair on the crown of the head.More >>
    Baldness could be a sign of prostate cancer. That's according to a new study from the National Cancer Institute.The study found men who had male pattern baldness at age 45 were 40% more likely to develop an aggressive form of prostate cancer when they got older.The study's author suspects the link is due to changes in hormone levels.Nearly 70% of men experience male–pattern baldness which is described as having a receding hairline and thinning hair on the crown of the head.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KMPH. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.