Heineken to Sell Mexican Packaging Unit for $1.2 Bln Cash

The financial particulars of the deal haven’t been disclosed yet, however, the agreement is pending regulatory approval and is expected to be finalized by the end of 2014.

The financial particulars of the deal haven’t been disclosed yet, however, the agreement is pending regulatory approval and is expected to be finalized by the end of 2014.

Dutch Brewing Company, Heineken NV, which currently ranks as the third largest brewer in the world, revealed in an official announcement today that it has agreed to sell its packaging business in Mexico to Crown Holdings Inc.

The financial particulars of the deal haven’t been disclosed yet, however, the agreement is pending regulatory approval and is expected to be finalized by the end of 2014. It is roughly estimated to be about $1.23 billion in cash.

The sale of Empaque business will help allow Heineken NV focus entirely on its brewing business as well as financial flexibility. Heineken’s beer brands include Heineken, Amstel, Dos Equis and Sol. Heineken in a statement said: “Divesting the Empaque packaging operations will allow Heineken to focus its resources fully on brewing, marketing and selling its portfolio of beer brands.”

“We are confident that Empaque will flourish under its new ownership and we look forward to our ongoing partnership,” Jean-François van Boxmeer, the chairman and chief executive of Heineken, said in a statement.

In 2010 Heineken acquired Monterrey-based Mexican company Empaque, which produces metal beverage cans, aluminum closures and glass bottles. Empaque employs an estimated 1,500 employees at its various manufacturing units in Mexico. The division made annual revenue of roughly €495 million last year and will continue to remain as one of Heineken’s supplier to its Mexican subsidiary, Cuauhtémoc Moctezuma on completion of the deal. Heineken soar up with €300 million ($394 million) after taxes. Philadelphia-based Crown will turn into the second largest beverage can producer in North America once the deal is finalized by being able to produce about 20% of cans worldwide, which is equivalent to supplying 62 billion cans a year.

Crown Holdings Inc. CEO Mr. John Conway said, “This transaction will allow us to expand our presence in the growing Mexican market, significantly strengthen our global beverage packaging business and deliver compelling benefits to shareholders.”

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Moderna vaccine more effective than Pfizer, study says

Moderna vaccine more effective than Pfizer, study says

Moderna’s Covid-19 vaccine does a slightly better job of preventing coronavirus-related hospitalizations and emergency department visits.
1 day ago
iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

iPhone 13 and iPhone 13 Pro: Specifications, Release Date, Features and much more

Apple iPhone 13 Pro and iPhone 13 Pro Max can be a hit with its ever new technology A15 Bionic chip and other cool profound features.
3 days ago
Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

Total signs $27 billion energy deal to fund 1-gigawatt solar power plant

The French oil major, Total, has signed a $27 billion deal to fund a 1-gigawatt solar power plant, and boost oil and gas production in the Middle-East region.
3 days ago
PMI seals $1.51 billion takeover of British inhalation specialist Vectura

PMI seals $1.51 billion takeover of British inhalation specialist Vectura

Philip Morris International (PMI) acquires a 22.6% stake in British inhalation specialist Vecutra closing in on the controversial $1.51 billion takeover.
4 days ago
Apple co-founder Steve Wozniak joins the space race

Apple co-founder Steve Wozniak joins the space race

Wozniak, popularly known as “Woz”, is setting up a private space company with Ripcord co-founder Alex Fielding. In a tweet, Wozniak shared a promotional video for the company c
5 days ago
Auto chip shortage affects its production; factory closures rise

Auto chip shortage affects its production; factory closures rise

Automakers like Peugot, Ford, and Toyota are on the run to regain high-margins from the auto chip making since the pandemic and weather disasters have taken over.
5 days ago