Loews Corp (L.N), a hotel, energy and financial services conglomerate, said it would buy plastic packaging manufacturer Consolidated Container Co from Bain Capital Private Equity for about $1.2 billion.
Consolidated Container, which provides packaging solutions for beverages, food and household chemicals, will become a part of a newly created segment called Loews Packaging Group, adding a new industry to Loews' already diverse portfolio.
"We have been analyzing the packaging industry for some time because it fits our key acquisition criteria," Loews Chief Executive James Tisch 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."
The deal is expected to be funded with about 50 percent cash on hand and 50 percent debt, Loews said.
Atlanta-based Consolidated Container's customers include Colgate-Palmolive, Procter & Gamble and Dean Foods among others.
Bain Capital Private Equity in March bought Diversey Care, the cleaning and chemicals systems division of Sealed Air Corp (SEE.N), for about $3.2 billion.
(Reporting by Nikhil Subba in Bengaluru; Editing by Savio D'Souza and Saumyadeb Chakrabarty)