Heineken to sell Mexican packaging business for $1.2bn

Dutch brewing giant Heineken on Monday announced selling Mexican-based packaging business Empaque to US-based Crown Holdings in a deal worth more than one billion dollars.
"Heineken ... has signed a binding agreement for the sale of its Mexican package business Empaque. The total enterprise value of the transaction amounts to $1.225 billion (933 million euros), the brewer said in a statement.
"The sale of Empaque is expected to result in a post-tax book gain of 300 million euros," it added.
The Amsterdam-based Heineken said it was selling Empaque to "focus its resources fully on brewing, marketing and selling its world class portfolio of beer brands."
It bought Empaque four years ago as part of its acquisition of Femsa Cervesa. Empaque will continue to supply Heineken's Mexican brewing business Cuauhtemoc Moctezuma through long-term supply contracts.
"A transfer to Crown, a dedicated global leader in consumer packaging, will benefit the development of Empaque in the long term," Heineken said.
The deal is expected to be finalised by the end of the year.
Pennsylvania-based Crown Holdings is a packaging business which employs about 21,300 people in 40 countries.
Founded in the 19th century in Amsterdam, Heineken makes and sells more than 200 brands of beer and cider including Amstel and Strongbow.
The group employs about 70,000 people worldwide.