Heineken has sold its Mexican packaging business Empaque to Crown Holdings for $1.225bn, in a bid to reduce its net debt by the end of this year.
The company said the proceeds from the sale will be used to reach the target of bringing its debt to below 2.5 times the EBITDA.
With the divestment, Heineken will focus on brewing, marketing and selling its beer brands.
The transaction is expected to be completed by the end of the year.
Acquired by Heineken in 2010 as a part of its purchase of Femsa Cerveza, Empaque produces metal beverage cans, crown corks, aluminum closures and glass bottles.
Empaque functions with three units. Famosa produces beverage cans, crown caps and aluminum caps in three plants in Monterrey, Toluca and Ensenada. Sivesa is into glass bottle production and has a manufacturing plant and service plant in Veracruz. Sisa is a silica sand mine in Veracruz.
The company operates with 1,500 employees and generated revenue of $660m in 2013.
Heineken said in a statement: "A transfer of ownership to Crown will benefit the development of Empaque in the long term and is expected to deliver additional career opportunities for its employees."
Empaque will continue to supply packaging services to Cuauhtémoc Moctezuma, Heineken's subsidiary in Mexico, through long-term contracts.
Heineken expects to make a post-tax book gain of about €300m with Empaque's.
The brewer was advised by Moelis & Co and Gibson Dunn & Crutcher for the sale.
Image: Heineken will focus on brewing, marketing and selling its beer brands. Photo: courtesy of Heineken.
