The $3.91 billion cash transaction is expected to close in the first quarter of 2018
Crown Holdings, Inc. has entered into an agreement to acquire Signode Industrial Group Holdings (Bermuda) Ltd. from The Carlyle Group, in a cash transaction valued at $3.91 billion. The acquisition is expected to close during the first quarter of 2018. With pro forma sales and adjusted EBITDA of $2.3 billion and $384 million, respectively, for the 12 months ended November 30, 2017, Signode is a leading supplier of transit packaging systems and solutions. Based in Glenview, Illinois, Signode's global footprint includes operations in 40 countries across 6 continents, with sales to customers in approximately 60 countries.
Timothy J. Donahue, President and Chief Executive Officer of Crown, stated, "With this acquisition, we add a portfolio of premier transit and protective packaging franchises to our existing metal packaging business, thereby broadening and diversifying our customer base and significantly increasing our cash flow. Signode's products supply critical in-transit protection to high value, high volume goods across a number of end-markets, including metals, food and beverage, corrugated, construction and agriculture, among others. Combined with its highly engineered equipment and service business, Signode offers full solutions to meet customers' transit packaging needs. In addition to its equipment and protective packaging businesses, geographic and product mix provide a strong platform for value-creating growth."
Mark Burgess, CEO of Signode, said, "From the moment we became a stand-alone company, through three years of operational improvement, product development, and growth, the Carlyle team has partnered with us and been fully committed in helping create tremendous value to our franchise. Signode is excited to join the Crown team and continue delivering great value add solutions for our customers."
Citigroup Global Markets Inc. acted as exclusive financial advisor to Crown and provided committed financing for the transaction.