US-based consumer packaging manufacturer Crown Holdings has received approval from Mexico’s Federal Competition Commission for its $1.23bn acquisition of Empaque, the Mexican packaging business of Heineken.
Earlier in September 2014, Heineken signed an agreement to divest Empaque to Crown.
Empaque employs approximately 1,500 people. It offers packaging services to the beverage industry, and operates in three segments: Famosa, Sivesa, and Sisa.
Famosa produces beverage cans, crown caps, and aluminium caps in three plants in Monterrey, Toluca and Ensenada.
Sivesa is a glass bottle production business with a plant in Veracruz, and Sisa is a silica sand mine.
Heineken CEO Jean-François van Boxmeer previously said: "We are confident that Empaque will flourish under its new ownership, and we look forward to our ongoing partnership."
Heineken expects the sale to facilitate its target of reducing debt to 2.5 times the earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of this year.
Following the sale, Heineken plans to focus on brewing, marketing, and selling its portfolio of beer brands.
Empaque will however continue to supply to Heineken’s subsidiary Cuauhtémoc Moctezuma, under long-term supply contracts.
It generated €495m in revenues and €96m in EBITDA for 2013. The total EBIT generated was €67m.
Crown designs, manufactures, and sells packaging products for consumer goods across the globe.
Image: Following the sale, Heineken plans to focus on brewing, marketing, and selling its portfolio of beer brands. Photo: courtesy of Heineken NV.