Nearly two years after the Blackstone Group acquired a significant stake in Spain-based consumer can manufacturer Mivisa for $1.2 billion, U.S. consumer packaging maker Crown Holdings (NYSE:CCK) has signed an agreement to buy Mivisa from Blackstone, N+1 Mercapital, and Mivisa management for $1.63 billion, Crown Holdings said today in a statement.
The transaction, which Crown Holdings said will be accretive to earnings upon closing in 2014, will be financed using previously secured debt. Citigroup Global Markets, the financing arm of Citigroup, has already committed to providing the debt needed to fund the cash deal, Crown Holdings said.
With10 manufacturing plants, including one in Morocco, the acquisition of Mivisa will bring Crown Holdings' total number of facilities to 159, according to the company's statement. Mivisa, Crown Holdings said, generated $754 million in annual revenue for the year ending June 30, 2013.
John W. Conway, Crown Holdings chairman and CEO, said of the deal to acquire Mivisa, "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."
The acquisition is subject to regulatory review and customary closing conditions.