Heineken to sell its concern CrownChris Middlebrooks (Author) Published Date : Sep 02, 2014 11:05 IST
Heineken the Dutch beer company is going to sell its packaging business Empaque which was located in Mexico to Crown for $1.23 billion which is included debt as they have acquired the business when they entered into the Mexican market four years earlier.
According to the world s third largest beer manufacturer it is looking to expand its business through marketing and also look to increase its resources after selling its non core business.
According to Heineken the deal would benefit them to generate $660 million revenue and earning before tax would be $130 million in 2013.
However despite selling the company Empaque will be providing can, cork and glass bottles as a long term contracts which was mentioned to the deal.
Heineken is expecting to reach its target of net debt ration which is below 2.5 times at the end of 2014 however it will happen after the end of the deal however the deal announcement can help it to boost further.
Earlier Heoneken did rise as the second big beer firm in Mexico after its launching at the country back in 2010 pairing with FEMSA FMSAUD.MX where it the firm also has the twenty percent shares of Heineken till date.
On the other hand Crown which is based in Philadelphia has its business across 40 countries where they produce can and metal container.
And Moelis & Company UK LLP and Gibson Dunn & Crutcher has been giving the advise during the transaction for Heineken.
Heineken to sell its concern Crown