Loews Corp to buy US plastic packaging manufacturer Consolidated Container for $1.2 bn

Loews Corp, a diversified US conglomerate, yesterday struck a deal to buy plastic packaging manufacturer Consolidated Container Co from private equity firm Bain Capital for about $1.2 billion.

Loews expects to fund the deal with about 50-per cent cash on hand and 50-per cent debt.

Post closing, Consolidated Container will be a part of a newly-created segment called Loews Packaging Group.

Consolidated Container provides packaging solutions to markets such as beverage, food, and household chemicals, water, and beverage.

The Atlanta, Georgia-based company specialises in customized mid and short-run packaging solutions.

It also operates a recycled and custom compounded post-consumer resin business, Envision Plastics. It has 57 rigid plastic packaging manufacturing facilities, two recycled resins manufacturing facilities, and employs 2,300 people.

Sean Fallmann, president and CEO of Consolidated Container, 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.  It remains our mission to be the packaging solutions provider of choice in North America."

With an annual turnover of over $15 billion, Loews is one of the largest diversified companies in the US, with businesses in the insurance, energy and hospitality industries.

Three of its subsidiaries are publicly traded, CNA Financial Corporation, Diamond Offshore Drilling, and Boardwalk Pipeline Partners,; while its fourth subsidiary, Loews Hotels, is wholly-owned, which operates 23 hotels in the US and Canada.

The company is based in New York and employs over 18,000 people.