Crown sells 80% of Alcochete canning factory

 In Companies, News

The largest factory in Alcochete has changed hands in a deal involving other factories in Europe worth €1.8Bn.

The US based Crown Holding has sold 80% of its factories in Europe, including a tinplate metal packaging factory near Lisbon to the investment fund company KPS Capital Partners in an operation worth €1.8Bn.
The sale of the Alcochete factory is part of an Europe-wide assets sale for the tinplate business valued at €2.2Bn (US$2.7Bn).
The net proceeds from the sales will be used for debt reduction, beverage can capital projects and share repurchases over time.
According to a communiqué, the sold Portugal unit will be 20% owned by Crown and 80% owned by KPS.
In 2020 Crown had a €1.9Bn turnover worldwide while its EBITDA was €220 million. The company has 6.300 workers spread out over 17 countries. The factory in Portugal has been in Alcochete since 1956.
Crown Cork, the largest company in the borough of Alcochete in terms of business turnover, saw €31.6 million in turnover in 2019, of which half of all production was exported.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Yardley, Pennsylvania.
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with over $12.3 billion of assets under management (as of December 31, 2020).
For nearly three decades, the Partners of KPS have worked exclusively to realise significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer healthcare and luxury products, automotive parts, capital equipment and general manufacturing.
KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage.
The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $10.6 billion, operate 159 manufacturing facilities in 22 countries, and have approximately 34,000 employees, directly and through joint ventures worldwide.