Monday, September 1, 2014

US/México: Heineken Sells EMPAQUE to US-Based Crown Holdings for US$1.2 Billion

According to The Latin American Tribune, Dutch brewer Heineken said it signed an agreement to sell its Mexican packaging business to US-based Crown Holdings for $1.22 billion.

The deal, which is subject to regulatory approval, is expected to close later this year, Heineken said in a statement.

Heineken said the sale of EMPAQUE, which manufactures metal beverage cans, glass bottles and other bottling products, would allow it to focus on producing, distributing and marketing its beer brands around the world.

COMMENT: The Dutch brewer’s Mexican packaging business posted revenues of $660 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $130 million in 2013.

EMPAQUE will continue to be a supplier to Cuauhtemoc Moctezuma, Heineken’s beer unit in México, following the sale to Crown under long-term contracts, the Dutch brewer said.