Crown Strengthens Its Position In Southeast Asia

Crown Holdings, Inc.

has entered into an agreement to purchase the 44.6% and 49.0% JV interest in two metal beverage can holding companies based in China (4 facilities) and Vietnam (1 facility) from affiliates of Swire Pacific Limited for $150M, giving Crown 100% ownership of both once the purchase is completed some time in 3Q2010, according to Goldman Sachs. Consolidated net sales for the assets were $250M, and in terms of strategy, Crown has now extending its leading market position in metal beverage cans in emerging markets, specifically Southeast Asia, Goldman reports. Goldman expects solid EPS growth in 2011, and that Crown will repurchase $500M in stock throughout FY2011, and also that shares of Crown tend to Outperform as US economic growth slows. Crown's EPS is expected to grow 18% y/y and are currently offering a 9.4% FCF yield. Goldman maintains its Buy rating for Crown Holdings, Inc., which closed yesterday at $28.67.