Heineken has completed the sale of its Mexican packaging business Empaque to Crown Holdings, in a previously announced deal worth $1.23bn.
This came after approval from Mexico’s Federal Competition Commission earlier this month.
Approximately €750m of sale proceeds will be used for a share buyback programme, placing the majority of proceeds from the Empaque disposal back in the hands of shareholders, whilst maintaining a strong balance sheet and financial flexibility, Heineken claims.
Heineken CEO Jean-François van Boxmeer said: "EMPAQUE was acquired as part of the FEMSA Cerveza acquisition, which was mainly paid for in shares."
The sale of Empaque is expected to generate €375m in post-tax book gain, which will be reported as an exceptional item.
With the completion of the divestment, Heineken can renew focus on brewing, marketing and sale of beer brands.
Employing approximately 1,500 people, Empaque 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.
Empaque generated €515m in gross revenues and €113m in EBITDA in 2014.
Image: Heineken plans to focus on brewing, marketing, and selling its portfolio of beer brands. Photo: courtesy of Heineken NV.