Crown Holdings Inc has entered into a definitive agreement to sell its European Tinplate business to KPS Capital Partners LP. Crown will receive pre-tax proceeds of approximately EUR 1.9 billion from the transaction and will retain a 20% ownership stake in the business.
The European Tinplate business comprises 44 manufacturing facilities in 17 countries in Europe, the Middle East and Africa which produce food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands.
In 2020, the business generated EUR 1.9 billion in revenue and approximately EUR 220 million in estimated standalone EBITDA and had approximately 6,300 employees.
The sale of the European Tinplate business is expected to close during the third quarter of 2021 and is subject to certain regulatory approvals and customary closing conditions.
Crown expects to use the net proceeds, after closing working capital adjustments, taxes and other transaction related costs, to further reduce debt, fund capital projects and repurchase shares over time under its recent $1.5 billion authorization dated February 25, 2021.
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.