Crown Holdings selling its European business

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Yardley-based Crown Holdings, a rigid packaging products supplier, recently entered into a definitive agreement to sell its European tinplate business to KPS Capital Partners, an investment funds company, for approximately $2.3 billion.

Crown also will retain a 20 percent ownership stake.

The business comprises 44 manufacturing facilities in 17 countries throughout Europe, Africa, and the Middle East and employs approximately 6,300. It produces aerosol cans, food cans and ends, metal closures, and promotional packaging for various consumer brands. It generated $2.3 billion in revenue last year.

“European customers and consumers alike have long embraced metal packaging, valuing the premium product protection and flavor preservation that it offers,” Timothy J. Donahue, Crown president and CEO, said. “The infinitely recyclable food can is unrivaled from a sustainability standpoint, helping eliminate over one billion liters a year in food waste. We are excited to retain a minority stake in the business alongside KPS as Crown shareholders will benefit from the KPS team and its track record of owning manufacturing companies and creating tremendous value.”

The deal is expected to close during the third quarter, subject to regulatory approvals and customary closing conditions.

Crown plans to use the net proceeds to further reduce debt, fund capital projects, and repurchase shares.