Heineken will divest its Mexican packaging business Empaque to Crown, in a deal worth $1.23bn.
An agreement to this effect has been signed by the two companies.
Heineken expects the sale to facilitate its target of reducing its debt to 2.5 times the EBITDA by the end of this year.
The company expects the deal to result in a post-tax book gain of approximately €300m.
Employing around 1,500 people, Empaque offers packaging services to the beverage industry. It operates in three segments, namely 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. Finally, Sisa is a silica sand mine in Veracruz.
The transaction, subject to customary closing conditions and required regulatory approvals, will be completed by the end of this year.
Heineken CEO and executive board chairman Jean-François van Boxmeer said: "We are confident that Empaque will flourish under its new ownership and we look forward to our ongoing partnership."
Following the sale, Heineken plans to focus on brewing, marketing and selling its portfolio of beer brands by using the proceeds generated from the divestment.
Empaque will continue to supply to Heineken’s subsidiary Cuauhtémoc Moctezuma, under long-term supply contracts.
Empaque recorded €495m in revenues and €96m in EBITDA for 2013. The total EBIT generated was €67m.
Headquartered in Pennsylvania, Crown designs, manufactures and sells packaging products for consumer goods across the globe.
Image: Heineken plans to focus on brewing, marketing and selling its portfolio of beer brands. Photo: courtesy of Heineken N.V.