Crown Holdings Completes Sale of Its European Tinplate Business

Rhea-AI Summary

Crown Holdings, Inc. (NYSE: CCK) has finalized the sale of its European Tinplate business to KPS Capital Partners, retaining a 20% ownership stake. The business, which includes 44 facilities across 17 countries, generated €1.9 billion in revenue and €220 million in EBITDA in 2020, employing around 6,300 individuals. This strategic move aims to enhance Crown's focus on core operations while leveraging retained interest in its former business. Detailed financial impacts and potential risks associated with this transaction are noted in forward-looking statements.

Positive

• Retention of a 20% ownership stake in the European Tinplate business may provide future financial benefits.
• The sale allows Crown Holdings to concentrate on its core business areas.

Negative

• The future value of the retained stake is uncertain, posing a risk to shareholder interests.

YARDLEY, Pa., Aug. 31, 2021 /PRNewswire/ -- Crown Holdings, Inc. (NYSE: CCK) (Crown), announced today that it has completed the previously announced sale of its European Tinplate business to KPS Capital Partners, LP.  As previously disclosed, Crown will retain a 20% ownership stake in the business.

The European Tinplate business comprises 44 manufacturing facilities in 17 countries in Europe, the Middle East and Africa which produce food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands.  In 2020, the business generated €1.9 billion in revenue and approximately €220 million in estimated standalone EBITDA and had approximately 6,300 employees.

About Crown Holdings, Inc.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets.  World headquarters are located in Yardley, Pennsylvania.  For more information, visit www.crowncork.com.

Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements.  These forward-looking statements involve a number of risks, uncertainties and other factors, including the future value, if any, to Crown shareholders of the 20% retained ownership interest in the business.  Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of Crown to differ are discussed under the caption "Forward Looking Statements" in Crown's Form 10-K Annual Report for the year ended December 31, 2020 and in subsequent filings made prior to or after the date hereof.  Crown does not intend to review or revise any particular forward-looking statement in light of future events.

For more information, contact:
Thomas A. Kelly, Senior Vice President and Chief Financial Officer, (215) 698-5341
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720

View original content:https://www.prnewswire.com/news-releases/crown-holdings-completes-sale-of-its-european-tinplate-business-301365308.html

SOURCE Crown Holdings, Inc.

FAQ

What did Crown Holdings announce on August 31, 2021?

Crown Holdings announced the completion of the sale of its European Tinplate business to KPS Capital Partners while retaining a 20% ownership stake.

How much revenue did the European Tinplate business generate in 2020?

The European Tinplate business generated €1.9 billion in revenue in 2020.

What are the implications of Crown's retained ownership stake?

Crown Holdings retains a 20% ownership stake, which may yield future financial returns but also introduces risks related to its valuation.

How many employees were part of the European Tinplate business?

The European Tinplate business employed approximately 6,300 individuals.