US-based rigid packaging supplier Crown has agreed to divest its Europe, the Middle East and Africa (EMEA) food and consumer packaging business to KPS Capital Partners.
The €2.25bn ($2.7bn) deal is expected to close in the third quarter of this year, subject to customary closing conditions being met and approvals being given.
Following the sale, Crown will own 20% of the business.
The EMEA food and consumer packaging business specialises in manufacturing steel and aluminium food packaging in Europe.
It currently operates 44 manufacturing facilities in EMEA countries and employs around 6,300 people, generating around €2.0bn ($2.3bn) a year.
Crown claims the business, whose products aim to encourage recycling and prevent food waste, is critical to the European food supply chain.
Crown chief executive officer Timothy Donahue said: “We are very pleased that the European Tinplate business will have a strong owner in KPS Capital Partners to support future profitable growth and innovation initiatives.
“We are excited to retain a minority stake in the business alongside KPS, as Crown shareholders will benefit from the KPS team and its track record of owning manufacturing companies and creating tremendous value.”
KPS co-founder and co-managing partner Michael Psaros said: “KPS will leverage its decades of global manufacturing experience to create an entrepreneurial culture centred on innovation and continuous improvement while providing the financial resources to invest in commercial and operational excellence and industry-leading customer service.”
Rothschild and Co is acting as lead financial adviser for the transaction while Paul, Weiss, Rifkind, Wharton and Garrison is serving as legal counsel to KPS and its affiliates.
Last month, KPS acquired aluminium rolling business Rolling from Norway-based aluminium company Norsk Hydro.