Crown Chairman and CEO John W. Conway says this acquisition will "significantly enhance Crown's strategic position in beverage cans, both regionally and globally." It will position Crown as the second largest beverage can producer in North America. The company will supply more than 24 billion units annually to both beer and soft drink customers there. Globally, it will supply more than 62 billion units per year, representing 20% of all beverage cans worldwide.
Empaque, headquartered in Monterrey, Mexico, has projected 2014 sales of approximately $700 million and EBITDA of approximately $150 million. The company employs 1,500 people at five facilities. Facilities include 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.
Commenting on the transaction, Conway says, “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.