Crown Holdings expands foothold in Mexico

BY THE END of the year, Crown Holdings, Inc. will have purchased Empaque, a manufacturer of aluminium cans and ends, bottle caps and glass bottles for the beverage industry, from Heineken N.V., in a cash transaction valued at about $1.225 billion.

The consumer packaging leader succeeds in elevating its position globally in the beverage cans segment after this transaction, according to Crown chairman and CEO, John W. Conway. It will become the second-largest can producer in North America where it currently supplies in excess of 24 billion units a year. Globally, it will supply 62 billion units.

"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."

Based in Monterrey, Mexico, Empaque has two beverage can plants for beverage can ends, aluminium closures and bottles caps, a glass bottle plant and a glass service facility. It was acquired by Heineken in 2010 as part of the FEMSA Cerveza. In 2014, the plant is expected to draw in $700 million in sales and EBITDA of about $150 million, in 2014.

According to Heineken, the divestment will allow it to focus on brewing, marketing and selling its beer brands. Meanwhile, Empaque will continue to supply Heineken’s subsidiary in Mexico, Cuauhtémoc Moctezuma.