Food packager Crown to buy Mivisa Envases to expand in Spain
(Reuters) - Food packaging company Crown Holdings Inc (CCK.N) said it would buy Spanish food-can maker Mivisa Envases for 1.20 billion euros ($1.65 billion) to expand its offerings for Spain's agriculture industry.
Crown said in a statement that it would buy Mivisa from investment funds managed by affiliates of The Blackstone Group LP (BX.N), N+1 Mercapital and management.
Mivisa was acquired by private equity firms Blackstone and funds advised by N+1 Private Equity - Dinamia (DIN.MC) and N+1 Private Equity Fund II - in 2011 for an undisclosed amount.
Mivisa, which reported sales of 555 million euros for the year ended June 30, mainly serves the vegetable, fruit, fish and meat industries. Mivisa has 10 manufacturing facilities, including six in Spain and one in Morocco, Crown said.
"(The deal) will significantly build upon Crown's existing position in the strategically important European food can segment by substantially increasing our presence in Spain, one of Europe's leading agricultural economies," Crown Chief Executive John Conway said in a statement.
Philadelphia-based Crown said it secured committed debt financing from Citigroup Global Markets. Citigroup was also the company's exclusive financial adviser for the deal, which Crown said is expected to close in 2014 and add to earnings.
Crown shares closed at $40.62 on the New York Stock Exchange on Wednesday.
($1 = 0.73 euros)
(Reporting by Siddharth Cavale in Bangalore; Editing by Robin Paxton and Kirti Pandey)
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