KPS Capital Partners signed a definitive agreement to acquire the Europe, Middle East and Africa food, aerosol and promotional packaging business (EMEA Food and Consumer Packaging Business) of Crown Holdings for €2.25 billion (approximately $2.7 billion). Crown will retain 20% ownership of the company. The transaction is expected to close in Q3/21 and is subject to customary closing conditions and approvals.
Barclays and Deutsche Bank led debt financing to support the transaction long with BNP Paribas, Credit Suisse and UBS Investment Bank.
The EMEA Food and Consumer Packaging Business is a manufacturer of steel and aluminum food packaging in Europe and a manufacturer of aerosol and promotional packaging. 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 billion ($2.38 billion).
“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,” Timothy Donahue, CEO of Crown Holdings, said. “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.”
“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,” Michael Psaros, co-founder and co-managing partner of KPS Capital Partners, said, “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’ 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.”
Rothschild & Co is acting as lead financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal counsel to KPS Capital Partners and its affiliates. Barclays and UBS are acting as financial advisors to KPS Capital Partners and its affiliates.