US-based rigid packaging supplier Crown Holdings has announced the acquisition of Helvetia Packaging, a beverage can manufacturing facility in Saarlouis, Saarland, Germany.
The acquisition of the facility will allow Crown to expand its current European beverage can manufacturing platform into Germany.
It is expected to add an annual can manufacturing capacity of nearly one billion units to Crown’s portfolio.
The completion of this deal is now subject to approval by German antitrust authorities.
The deal is expected to be made official by the end of the current year.
The Saarlouis plant will continue to remain operational during the wait for this approval.
The companies have not disclosed the financial terms of this transaction; however, Crown confirmed that the impact of this pending acquisition would be 'negligible' on its net leverage.
As per the deal's terms, Crown will assume Helvetia's existing customer base and any accompanying contracts.
Crown's CEO, president, and chair Timothy J Donahue said: “We look forward to welcoming the employees of the Saarlouis facility to the Crown family as we extend our European beverage can network to Germany to better serve the needs of local and regional customers."
According to Crown, there is an increasing demand, both in alcoholic and non-alcoholic drinks segments, for aluminium beverage cans, mainly due to its sustainability benefits with its infinite recyclability.
