Loews has agreed to acquire US-based rigid plastic packaging manufacturer Consolidated Container Company (CCC) from Bain Capital Private Equity for about $1.2bn.
Based in Atlanta of Georgia, CCC offers packaging solutions to stable end markets such as beverage, food and household chemicals.
The acquired business will be included in newly established segment, Loews Packaging Group.
With manufacturing facilities across North America, CCC provides customized mid and short-run packaging solutions for customers in the household chemicals, food/nutraceuticals, industrial/specialty chemicals, water and beverage/juice markets.
The company also runs recycled and custom compounded post-consumer resin business called Envision Plastics.
With around 2,300 employees, CCC operates 57 rigid plastic packaging manufacturing facilities, two recycled resins manufacturing facilities.
Subject to customary closing conditions, the deal is expected to complete in the second quarter of this year.
Loews president and CEO James Tisch said: "We have been analyzing the packaging industry for some time because it fits our key acquisition criteria: It is a fragmented industry that generates strong cash flows and we believe it is unlikely to be subject to major technological disruption.
"CCC is an outstanding company with a highly professional management team that can serve as a platform for growth, both organically and through acquisitions."
CCC president and CEO Sean Fallmann said: "I have every confidence that Loews will be an excellent partner for CCC as we continue to invest in differentiated capabilities to best serve our customers.”
Loews operates three publicly-traded subsidiaries, including CNA Financial, Diamond Offshore Drilling and Boardwalk Pipeline Partners. It also has one wholly owned subsidiary, Loews Hotels & Co.
Image: Loews to acquire US-based Consolidated Container Company. Photo: courtesy of adamr / FreeDigitalPhotos.net.