US-based consumer packaging manufacturer Crown has entered an agreement to purchase Signode Industrial Group in a $3.91bn cash transaction.
Based in Glenview, Illinois, Signode is a provider of transit packaging systems and solutions that comprise strap, stretch and protective packaging consumables, in addition to related application equipment and tooling.
Subject to review by various competition authorities, Signode Industrial Group will be acquired by Crown from American asset management company The Carlyle Group.
Crown president and chief executive officer Timothy Donahue said: “With this acquisition, we add a portfolio of premier transit and protective packaging franchises to our existing metal packaging business, thereby broadening and diversifying our customer base and significantly increasing our cash flow.”
Subject to customary closing adjustments, the transaction is expected to conclude during the first quarter of next year.
Debt financing has also been fully committed in support of the acquisition.
Donahue added: “Combined with its highly engineered equipment and service business, Signode offers full solutions to meet customers’ transit packaging needs.
“In addition to its equipment and protective packaging businesses, geographic and product mix provide a strong platform for value-creating growth.”
Citigroup Global Markets served as the exclusive financial adviser to Crown and offered committed financing for the transaction.
Signode Industrial Group is currently operational in 40 countries across six continents, with sales to customers in nearly 60 countries.