This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Crown Holdings Jumps on $1.6 Billion Deal for Spain's Mivia

NEW YORK (TheStreet) -- Crown Holdings (CCK) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,104.47 +17.84 0.10%
S&P 500 1,989.07 +2.06 0.10%
NASDAQ 4,475.8860 +2.1890 0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs