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 approvals.
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 group results.
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 flexibility.
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.
Jean-François 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.
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EMPAQUE is 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 customers.
About Crown Holdings, Inc.
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).
Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us via @HEINEKENCorp
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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 management estimates.
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Source: HEINEKEN NV via Globenewswire