FDBusiness.com

Heineken Disposes of Mexican Packaging Operations

 Breaking News
  • Zero Alcohol Drinks Growing 10% a Year in Europe A new report from Zenith Global on European Zero Alcohol Drinks forecasts sales growth of almost 10% a year over the next five years. Zenith Global estimates the European market at €5.9 billion in 2018. This would take 2023 value to €9.3 billion. “The United Kingdom is expected to achieve the highest growth rate at 30% [...]...
  • CO2 Refrigeration System For BrewDog’s Eurocentral Warehouse Star Refrigeration has been commissioned a second time to work with Scottish multinational craft beer company BrewDog as it continues to expand. The cold storage and distribution specialists successfully delivered an eco-friendly, cost effective solution for Europe’s first fully refrigerated beer warehouse. Having recently acquired the brand new Eurocentral warehouse in Motherwell, BrewDog commissioned Star to [...]...
  • ABF to Enter Joint Venture in China Associated British Foods and Yihai Kerry Arawana Holdings, a subsidiary of Wilmar International, are to form a 50:50 joint venture in China for the manufacture, sale and distribution of yeast and bakery ingredients. The joint venture will acquire existing Chinese yeast and bakery ingredients activities of AB Mauri, a division of ABF, and will leverage [...]...
  • Premium Products and Value Prices a Hit With Irish Grocery Shoppers The latest figures from Kantar show that overall the Irish grocery market grew by 4.2% over the 12 weeks to 19 May 2019, with Dunnes Stores holding off the challenge of Tesco and retaining pole position. Respective growth of 12.6% and 5.9% for Aldi and Lidl means that the retailers’ combined grocery market share stands [...]...
  • Lactalis Expands in Italy Lactalis Group is strengthening its position within the Italian dairy industry by acquiring cheese maker Nuova Castelli for an undisclosed sum. Operating 13 production sites in Italy and three abroad – in Poland, Hungary and the US – Nuova Castelli specialises in the production and distribution of AOC cheese such as Parmigiano Reggiano, Mozzarella di [...]...

Heineken Disposes of Mexican Packaging Operations

Heineken Disposes of Mexican Packaging Operations
September 09
01:36 2014

Heineken has agreed to sell its Mexican packaging business Empaque to Crown Holdings in a deal worth $1.225 billion. The transaction is expected to close by the end of the year and is subject to customary closing conditions and required regulatory approvals.

Divesting the Empaque packaging operations will allow Heineken to focus its resources fully on brewing, marketing and selling its beer brands. In 2013 Empaque generated revenue of Eur495 million ($660 million), mostly intercompany, and EBITDA of Eur96 million. The 2013 EBIT (Beia) was Eur67 million.

Following the divestment, Empaque will remain a key strategic supplier to Cuauhtémoc Moctezuma, Heineken’s wholly owned subsidiary in Mexico, through long-term supply contracts.

Heineken expects to reach its target net debt/EBITDA (beia) ratio of below 2.5x by the end of 2014. The proceeds of this divestment will provide further financial flexibility.

The sale of Empaque is expected to result in a post-tax book gain of approximately Eur300m. This will be reported as an exceptional item.

Empaque, which was acquired by Heinkene in 2010 as part of the FEMSA Cerveza acquisition, produces metal beverage cans, crown corks, aluminium closures and glass bottles. A transfer of ownership to Crown, a dedicated, global leader in consumer packaging, will benefit the development of Empaque in the long term.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
  • October 17, 2019Future Food-Tech
AEC v1.0.4

Jobs: Food Packaging

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements