US rigid packaging firm Crown to divest its EMEA business to KPS Capital Partners

The US-based rigid packaging firm Crown has decided to divest its Europe, Middle East and Africa (EMEA) food and consumer packaging business to the American investment company KPS Capital Partners.

The $2.7 billion deal is expected to conclude during Q3 2021, subject to customary closing conditions being met and approvals being given.

Crown will own a 20% stake in the business, following the divestment.

The EMEA food and consumer packaging business specialises in manufacturing aluminium and steel food packaging in Europe.

However, it presently operates 44 manufacturing facilities in EMEA countries and employs around 6,300 people, generating around $2.3 billion a year.

Crown proclaims that the products of the business aim to boost recycling and prevent food waste is vital to the European food supply chain.

Timothy Donahue, CEO, 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.”

“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.”

Michael Psaros, KPS co-founder and co-managing partner said: “KPS will leverage its decades of global manufacturing experience to create an entrepreneurial culture centred on innovation and continuous improvement while providing the financial resources to invest in commercial and operational excellence and industry-leading customer service.”

Rothschild and Co is acting as lead financial advisor for the transaction, while Paul, Weiss, Rifkind, Wharton and Garrison is serving as legal counsel to KPS and its affiliates.

However, in the previous month, KPS acquired an aluminium rolling business from Norway-based aluminium company Norsk Hydro.