HEINEKEN divests packaging operations in Mexico
Sep 01, 2014
OTC Disclosure News Service
HEINEKEN divests packaging operations in Mexico
Amsterdam, 1 September 2014: Heineken
N.V. (‘HEINEKEN’) today announces that it has signed a binding agreement with
Crown Holdings Inc (‘Crown’) for the sale of its Mexican packaging business
EMPAQUE. The total enterprise value1 of the transaction
amounts to USD 1.225bn. The transaction is expected to close by the end of the
year and is subject to customary closing conditions and required regulatory
Divesting the EMPAQUE packaging
operations will allow HEINEKEN to focus its resources fully on brewing,
marketing and selling its world class portfolio of beer brands.
In 2013 EMPAQUE generated revenue of
EUR 495m (c. USD 660m), mostly intercompany, and EBITDA of EUR 96m (c. USD
130m). The 2013 EBIT (Beia) was EUR 67m (c. USD 95m).
EMPAQUE’s financial results to date
have been included under the “Head Office” reporting unit in HEINEKEN
Following the divestment, EMPAQUE will
remain a key strategic supplier to Cuauhtémoc Moctezuma, HEINEKEN’s wholly
owned subsidiary in Mexico, through long-term supply contracts.
As previously communicated, Heineken
expects to reach its target net debt/ EBITDA (beia) ratio of below 2.5x by
the end of 2014. The proceeds of this divestment will provide further financial
The sale of EMPAQUE is expected to
result in a post-tax book gain of approximately €300m. This will be reported as
an exceptional item.
EMPAQUE, which was acquired by
HEINEKEN in 2010 as part of the FEMSA Cerveza acquisition, produces metal
beverage cans, crown corks, aluminium closures and glass bottles. A
transfer of ownership to Crown, a dedicated, global leader in consumer
packaging, will benefit the development of EMPAQUE in the long term and is
expected to deliver additional career opportunities for its employees.
van Boxmeer, Chairman of the Executive Board/CEO of Heineken N.V. commented:
“We are confident that EMPAQUE will flourish under its new ownership and
we look forward to our ongoing partnership. We would like to thank everyone at
EMPAQUE for the excellent performance over the years, and wish the business
every success for the future.”
Moelis Company UK LLP and Gibson
Dunn Crutcher acted as advisors to HEINEKEN for this transaction.
¹) The total enterprise
value consists of the sum of the equity purchase price plus net debt and net
debt equivalents assumed by Crown Holdings Inc.
dedicated to providing strategic packaging supplies to the beverage industry. EMPAQUE engages in three main activities:
- FAMOSA, which produces beverage cans, crown caps and
aluminium caps in three plants in Monterrey, Toluca and Ensenada
- SIVESA, a glass bottle production with a glass bottle
plant and a service plant in Veracruz
- SISA, a silica sand mine also in Veracruz
These businesses have
been operating in Mexico for over 90 years. Initially as part of FEMSA, EMPAQUE
reached leadership in the industry. After the 2010 acquisition of FEMSA Cerveza
by HEINEKEN, EMPAQUE was able to compete in new markets, increasing its international
presence. Today EMPAQUE employs more than 1,500 people who deliver quality and
innovative products as well as differentiated technical service to its
About Crown Holdings,
Crown Holdings, Inc.,
through its subsidiaries, is a leading supplier of packaging products to
consumer marketing companies around the world. The company produces a wide
range of metal packaging for food, beverage, household and personal care and
industrial products and metal vacuum closures and caps.
World headquarters are
located in Philadelphia, Pennsylvania. For more information, visit www.crowncork.com.
HEINEKEN is a proud,
independent global brewer committed to surprise and excite consumers with its
brands and products everywhere. The brand that bears the founder’s family name
– Heineken® – is available in almost every country on the globe and is the
world’s most valuable international premium beer brand. The Company’s aim is to
be a leading brewer in each of the markets in which it operates and to have the
world’s most valuable brand portfolio. HEINEKEN wants to win in all markets
with Heineken® and with a full brand portfolio in markets of choice. The
Company is present in over 70 countries and operates more than 165 breweries.
HEINEKEN is Europe’s largest brewer and the world’s second largest by
consolidated volume. HEINEKEN is committed to the responsible marketing and
consumption of its more than 250 international premium, regional, local and
specialty beers and ciders. These include Heineken®, Amstel, Anchor, Biere
Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster’s,
Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate,
Tiger and Zywiec. Our leading joint venture brands include Cristal and
Kingfisher. The number of people employed is over 81,000. Heineken N.V. and
Heineken Holding N.V. shares are listed on the NYSE Euronext in Amsterdam.
Prices for the ordinary shares may be accessed on Bloomberg under the symbols
HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and
HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR)
programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY).
information is available on HEINEKEN’s website: www.theHEINEKENcompany.com and
follow us via @HEINEKENCorp
This press release
contains forward-looking statements with regard to the financial position and
results of HEINEKEN’s activities. These forward-looking statements are subject
to risks and uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. Many of these risks and
uncertainties relate to factors that are beyond HEINEKEN’s ability to control
or estimate precisely, such as future market and economic conditions, the
behaviour of other market participants, changes in consumer preferences, the
ability to successfully integrate acquired businesses and achieve anticipated
synergies, costs of raw materials, interest-rate and exchange-rate
fluctuations, changes in tax rates, changes in law, pension costs, the actions
of government regulators and weather conditions. These and other risk factors
are detailed in HEINEKEN’s publicly filed annual reports. You are cautioned not
to place undue reliance on these forward-looking statements, which are only
relevant as of the date of this press release. HEINEKEN does not undertake any
obligation to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date of these
statements. Market share estimates contained in this press release are based on
outside sources, such as specialised research institutes, in combination with
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