CROWN HOLDINGS, INC. TO RECEIVE PROCEEDS FROM CLOSING OF EVIOSYS SALE TO SONOCO PRODUCTS COMPANY

Rhea-AI Summary

Crown Holdings (NYSE: CCK) announced the completion of its strategic divestiture of European Tinplate business, Eviosys, to Sonoco Products Company. The company will receive net cash proceeds of approximately $300 million for its remaining 20% equity stake in Eviosys.

According to CFO Kevin Clothier, the proceeds will support Crown's objective of achieving a net leverage ratio below 3.0x by year-end, while progressing toward their longer-term target of 2.5x.

Positive

• Receipt of $300 million in cash proceeds from Eviosys stake sale
• Strategic completion of European Tinplate business divestiture
• Expected improvement in net leverage ratio

Negative

• Complete exit from European Tinplate market segment

Insights

Financial Analyst

The $300 million cash proceeds from selling Crown Holdings' remaining 20% stake in Eviosys represents a significant strategic move that strengthens the company's balance sheet. The transaction's timing is particularly favorable as it helps Crown achieve its year-end leverage target of below 3.0x, demonstrating strong financial discipline. This debt reduction strategy enhances financial flexibility and could potentially lower interest expenses.

The complete exit from the European Tinplate business streamlines Crown's portfolio and allows management to focus on core growth areas. The sale proceeds provide additional financial resources that could be used for debt reduction, strategic investments, or shareholder returns. The progression towards a 2.5x leverage target indicates a conservative financial approach that should appeal to risk-conscious investors.

TAMPA, Fla., Dec. 4, 2024 /PRNewswire/ -- Following the closing today of the previously announced sale of Eviosys to Sonoco Products Company, Crown Holdings, Inc. (NYSE: CCK) (Crown) will receive net cash proceeds of approximately $300 million in return for its remaining equity stake of approximately 20%.

Commenting on the transaction, Kevin Clothier, Crown's Senior Vice President and Chief Financial Officer, stated, "This completes the strategic divestiture of our European Tinplate business. We are pleased that this transaction has closed in a timely manner, and the proceeds will support our stated objective of ending the year with a net leverage ratio below 3.0x, while continuing to progress toward our longer-term target of 2.5x."

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 Tampa, Florida. For more information, visit www.crowncork.com.

For more information, contact:
Kevin C. Clothier, Senior Vice President and Chief Financial Officer, (215) 698-5281, or
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720

View original content:https://www.prnewswire.com/news-releases/crown-holdings-inc-to-receive-proceeds-from-closing-of-eviosys-sale-to-sonoco-products-company-302322546.html

SOURCE Crown Holdings, Inc.

FAQ

How much did Crown Holdings (CCK) receive from the Eviosys sale to Sonoco?

Crown Holdings received approximately $300 million in net cash proceeds from the sale of its remaining 20% equity stake in Eviosys to Sonoco Products Company.

What is Crown Holdings' (CCK) target leverage ratio after the Eviosys sale?

Crown Holdings aims to achieve a net leverage ratio below 3.0x by year-end, with a longer-term target of 2.5x.

What percentage stake did Crown Holdings (CCK) sell in Eviosys?

Crown Holdings sold its remaining approximately 20% equity stake in Eviosys to Sonoco Products Company.