Loews buying blow molder Consolidated Container

Loews Corp., a hotel, energy, and financial services conglomerate, is buying plastic packaging manufacturer Consolidated Container Co. (CCC) from Bain Capital Private Equity for approximately US$1.2 billion.

The deal is expected to be funded with about 50 per cent cash on hand and 50 percent debt, Loews said in a statement.

Atlanta, Ga.-based CCC blow molds packaging solutions for beverage, food, and household chemicals. It will be a part of a newly-created segment called Loews Packaging Group.

Bain Capital is a Boston, Mass.-based investment firm that acquired CCC in 2012 for US$800 million from Vestar Capital Partners.

“We have been analyzing the packaging industry for some time because it fits our key acquisition criteria: It’s a fragmented industry that generates strong cash flows and we believe it is unlikely to be subject to major technological disruption,” Loews CEO James Tisch said in a statement. “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 will serve as a robust growth platform for Loews in the packaging industry.”

The acquisition is expected to close in second quarter of 2017.