Loews Corp. said Tuesday it will buy plastic packaging maker Consolidated Container Company for $1.2 billion from Bain Capital Private Equity. The deal is expected to close in the second quarter, and will be funded with about 50% cash on hand, and 5% debt at Consolidated Container (CCC). “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,” said Loews Chief Executive James Tisch. Bain had acquired CCC from Vestar Capital Partners in 2012 for an undisclosed amount. Loews’s three publicly-traded subsidiaries are CNA Financial Corp. , Diamond Offshore Drilling Inc. and Boardwalk Pipeline Partners LP (BWP), and a private subsidiary, Loews Hotels & Co. Loews’s stock, which was still inactive in premarket trade, has gained 1.4% year to date while the S&P 500 has tacked on 5.3%.
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