This Day On The Street
Continue to site
ADVERTISEMENT
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

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

NEW YORK ( TheStreet) -- Crown Holdings (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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CCK $51.51 0.00%
AAPL $121.30 0.00%
FB $94.01 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs