KPS Capital Partners LP has signed a definitive agreement to acquire the Europe, Middle East and Africa food, aerosol and promotional packaging business from Crown Holdings Inc. for €2.25 billion (approximately $2.7 billion). Crown will retain 20% ownership of the Company.
Michael Psaros, co-founder and co-managing partner of KPS, said, “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. We thank Mr. Donahue and Crown for their confidence in KPS and trust in our stewardship of the extraordinary business they have built.”
Timothy Donahue, CEO of 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. 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.”
Rothschild & Co is acting as lead financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to KPS and its affiliates. Barclays and UBS are also acting as financial advisors to KPS and its affiliates. Debt financing to support the transaction is being led by Barclays and Deutsche Bank along with BNP Paribas, Credit Suisse and UBS Investment Bank.