Crown acquires remainder of Asian joint ventures

By Guy Montague-Jones

- Last updated on GMT

Related tags: Ho chi minh, Subsidiary, Crown

Crown has agreed to acquire the remaining interest in its can manufacturing joint ventures in China and Vietnam from affiliates of Swire Pacific Limited.

In China, the company is to acquire the remaining 44.57 per cent interest in the holding company of its four joint venture facilities there.

And in Vietnam, Crown plans to acquire the remaining 49 per cent share in its venture in the country, which consists of one facility in Hanoi.

Purchase price

The aggregate purchase price for the joint venture operations in the two countries is $150m. Crown said the consolidated net sales in 2009 for these operations stood at about $250m.

Upon closing of the acquisitions, which is expected during the third quarter, the holding companies will become wholly-owned subsidiaries of Crown.

Asian expansion

Commenting on the announcement, Crown CEO and chairman John Conway, said: “The acquisition, along with our previously announced decisions to expand production capacity in China and Vietnam, supports Crown’s emerging markets growth initiative in Asia.”

Earlier in the year, Crown revealed plans to install a second beverage can line and double production at a recently acquired drinks container facility in Vietnam. The investment in the plant in northwest of Ho Chi Minh City was with the intention of doubling annual capacity from 600m two-piece 33cl drinks cans to 1.2bn cans.

Emerging markets such as Vietnam and China have been highlighted as crucial to the future for Crown. Conway has listed China, Southeast Asia, Brazil, Eastern Europe and the Middle East as its big emerging market drivers.

Related topics: Processing & Packaging

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