Loews Corp. (NYSE: L) announced that it will buy plastic packaging manufacturer Consolidated Container Co from Bain Capital Private Equity for $1.2 billion. The company provides packaging solutions for food, beverages and household chemicals that will be integrated in a new segment called Loews Packaging Group which will expand Loews’ portfolio.
“We have been analyzing the packaging industry for some time because it fits our key acquisition criteria,” James Tisch, Chief Executive of Loews said in a statement. “It is a fragmented industry that generates strong cash flows and we believe it is unlikely to be subject to major technological disruption.”
Loews expects to fund the deal with 50 percent debt and 50 percent cash on hand. Some of Consolidated Container’s customers include Dean Foods, Procter & Gamble, Colgate-Palmolive etc.