Consumer markets are growing all over the world, which is creating demand for packaging. This is a trend that is not lost on investors, particularly conglomerate Loews. Other strategic buyers, such as Berry Plastics and Silgan Holdings, are looking to expand their presence in plastic products across the food and beverage and household sectors.
Loews Corp. (NYSE: L) has been eyeing deals in the packaging sector and says the space will continue to see robust M&A. The New York-based buyer has agreed to purchase Consolidated Container Co. (CCC), a manufacturer of plastic packaging materials, for approximately $1.2 billion from Bain Capital Private Equity. As a result, Loews will form a new division called Loews Packaging Group. CCC makes rigid plastic products and also operates a recycled resin business called Envision Plastics. The target specializes in services for the household, food and nutritional pharmaceuticals, industrials, and beverage industries.