Loews Corp. said March 12 it is selling 47 percent of blow molder and recycler Altium Packaging LP to GIC, Singapore's sovereign wealth fund.
Atlanta-based Altium, which ranked fourth on Plastics News' listing of North American blow molders with $1.525 billion in related sales, said having GIC as an investor along with Loews will help its growth strategy.
"Having Loews and GIC, two world-class institutions, as our partners will be invaluable as we continue to pursue our growth strategy and seek accretive acquisitions that add further scale and end-market diversification," President and CEO Sean Fallmann said.
In a filing to the Securities and Exchange Commission, Loews said it expects to receive $410 million in cash for the sale, with a pretax gain of $490 million. Loews said the deal values Altium at $2 billion.
That is substantially higher than the stock market has valued Altium. In an Aug. 3 earning call with analysts, Loews CEO Jim Tisch complained that the market was valuing three Loews subsidiaries — natural gas pipeline company Boardwalk, Loews Hotels and Altium — at a total of less than $500 million, "which to my mind is patently absurd."
Loews paid $1.2 billion for Altium in 2017, consisting of $600 million in equity and $600 million in debt.
Loews and GIC expect to close the deal in 30 days.
Altium, which was formerly known as Consolidated Container Co. LLC, has 64 packaging plants in the U.S. and Canada.