December 19, 2017 / 2:27 PM / 2 years ago

Packaging company Crown Holdings to buy Signode in $3.91 billion deal

(Reuters) - Packaging company Crown Holdings Inc (CCK.N) said on Tuesday it would buy Signode Industrial Group Holdings Ltd from Carlyle Group LP (CG.O) in a deal valued at $3.91 billion.

Shares of Crown were up 4.2 percent at $60.22 in morning trading.

Glenview, Illinois-based Signode, which had pro-forma sales of $2.3 billion in the year ended Nov. 30, makes strap, stretch and protective packaging used in shipment of goods.

Crown makes food and beverage cans, metal vacuum closures, aerosol cans for several companies including Proctor & Gamble Co (PG.N), Coca-Cola Co (KO.N), Molson Coors Brewing Co (TAP.N), Danone SA (DANO.PA) and Unilever Plc (ULVR.L).

Crown said the deal, expected to close in the first quarter of 2018, is expected to significantly increase its free cash flow.

Citigroup Global Markets Inc was the financial adviser to Crown.

Reporting by Arunima Banerjee in Bengaluru; Editing by Savio D'Souza and Anil D'Silva

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