KPS acquires packaging business of Crown holdings

 

KPS Capital Partners has recently signed an agreement to acquire Crown Holdings’ EMEA Food and Consumer Packaging Business in Europe, Middle East and Africa (EMEA Food and Consumer Packaging Business) for EUR 2.25 billion. Crown will retain 20% ownership of the Company, according to KPS’s press release.

The transaction is expected to close in the third quarter of 2021.

Crown EMEA Food is the largest manufacturer of steel and aluminium food packaging in Europe and a leading manufacturer of aerosol and promotional packaging. Michael Psaros, co-founder and co-managing partner of KPS, has underlined the importance of this acquisition, one of the largest metal packaging companies 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 basis for a tremendous investment platform.”

Timothy Donahue, Crown’s CEO, said he was pleased with the deal and especially that “the European tinplate business has a strong owner in Capital Partners to support future innovation and profitable growth initiatives. European customers and consumers have long embraced metal packaging, valuing the protection of premium products and the taste preservation they offer.

We are excited to retain a minority stake in the business along with KPS, as Crown shareholders will benefit from the KPS team and their track record of owning manufacturing businesses and creating tremendous value.”

KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, “a family of investment funds with over $12.3 billion of assets under management (as of December 31, 2020). For nearly three decades, the partners of KPS have worked exclusively to achieve significant capital appreciation by making control equity investments in manufacturing and industrial companies across a broad range of industries, including basic materials, branded consumer, health care and luxury goods, automotive parts, ca[1]pital. equipment and general manufacturing.”

Crown Holdings, through its subsidiaries, is a leading global provider of rigid packaging products for consumer marketers, as well as protective and transit packaging products, equipment and services for a wide range of end markets.