Crown Holdings Looks at Selling Food Cans Division in $2 bn Deal

Crown Holdings Inc., one of the world’s largest designers and manufacturers of packaging products, is considering a sale of its food can business, according to people with knowledge of the matter.

The Philadelphia-based company is speaking with advisers about a sale of the unit early next year, said the people, who asked not to be identified because the information is private. The business, which is generating about $200 million a year in earnings before interest, taxes, depreciation, and amortization, is expected to fetch about $2 billion and attract interest from other packaging groups and private equity firms, the people said.

The company, which launched a strategic review last year, could still decide against selling the unit, the people said.

A representative for Crown declined to comment.

Crown is the largest manufacturer of food cans in the world, making 120 billion beverage, aerosol and other cans a year. The company reported $11.7 billion in revenue last year, up from $11.2 billion in 2018. It attributed the boost to its $3.9 billion acquisition of strap, stretch and protective packaging maker Signode Industrial Group from Carlyle Group LP, according to its annual results in February.

 Crown, which traces its origins to 1892, has more than 200 manufacturing plants globally and the majority of its revenue comes from outside the U.S. The company’s principal competitors include Ball Corp, which merged with Rexam Plc in 2016, and Ardagh Group.

Source: Bloomberg