NEW YORK (
(CCK - Get Report) a maker of food, beverage, household and personal care packaging products, said Thursday it has a deal in place to acquire private equity-backed Mivisa Envases SAU of Spain in a 1.2 billion euro ($1.6 billion) deal that would substantially increase the U.S. packaging firm's presence overseas.
Shares of Philadelphia-based Crown, $8.6 billion-sales with 149 plants in 41 countries, was jumping 5.8% to $42.99 in mid-day trading.
Mivisa, based in Murcia, Spain, is a supplier of vegetable, fruit, fish and meat cans and packaging to buyers in Europe, Latin America and Morocco. The company, which is about 90% owned by affiliates of Blackstone Group LP, with the rest owned by N+1 Mercapital and management, generated Ebitda of 133 million on sales of 555 million in the 12 months ending June 30.
The target operates 10 manufacturing facilities, including six in Spain and one apiece in Morocco, Hungary, Peru and the Netherlands. The company said that its purchase of Mivisa would build on its position in Europe and strengthen its presence in Spain, one of Europe's largest agricultural economies.
"Mivisa has demonstrated impressive sales and profitability growth in recent years through prudent investment, highly efficient manufacturing practices, focused innovation and excellent customer relationships," Crown chairman and CEO John W. Conway said in a statement. "We believe that adding this well-performing business to our broad network of food can operations in Europe will result in compelling benefits to both customers and shareholders."
Crown, according to reports, was among the parties interested when Mivisa sold to Blackstone and N+1 for about 850 million in December 2010. Mivisa has long been held by private equity firms, with Blackstone and N+1 acquiring it from CVC Capital Partners Group. Luxembourg-based CVC bought the company in 2005 from PAI Partners and Suala Capital Advisers SL for a reported 520 million.
N+1 in a statement said that assuming the transaction closes as expected in early 2014, the deal would generate a gross annual internal rate of return for the firm of about 35%.
Citigroup Global Markets Inc. acted as exclusive financial adviser to Crown and provided committed financing for the deal. A Dechert LLP team led by William Lawlor and including partners Ian Hartman and Gary Green is providing legal advice to the company.
By Lou Whiteman in Atlanta
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