Aug 22 2005
Crown Holdings, Inc., today announced that it has entered into an agreement to sell its Global Plastic Closures business to funds managed or advised by PAI partners, a leading European private equity firm, for an aggregate purchase price of approximately US $750 million, which includes the assumption of certain liabilities. The purchase price is subject to adjustment for, among other items, net debt and working capital at closing. Net cash proceeds from the sale are expected to be approximately US $650 million and will be used for general corporate purposes including the repayment of debt. Approximately 75% of the proceeds will be paid in Euros.
Crown's Global Plastic Closures business designs, manufactures and sells plastic closures for consumer packaging worldwide primarily for the personal care, food, beverage, pharmaceutical and industrial end markets. The business has 29 facilities located in 15 countries across Europe, the United States and Asia with approximately 3,500 employees. For the twelve months ended December 31, 2004 total revenues for the business were US $676 million with approximately 76% derived from sales in Europe.
The transaction is subject to certain closing conditions, including the receipt of regulatory approvals and other customary conditions, and is expected to close later this year.