(Updates with details on deal)
March 12 (Reuters) - Loews Corp said on Friday it would sell 47% stake in subsidiary Altium Packaging to Singapore’s sovereign wealth fund GIC in a deal valuing the packaging solutions provider at $2 billion.
Loews, which owns companies in the insurance, energy, hospitality and packaging industries, expects to receive about $410 million in cash as part of the deal, resulting in about pre-tax gain of $490 million. Atlanta, Georgia-based Altium Packaging serves a diverse network of market segments, and its recycled resin business is a top supplier of recycled high-density polyethylene in North America.
Having Loews and GIC as partners will help pursue growth strategy and seek accretive acquisitions that add further scale and end-market diversification, according to Sean Fallmann, Altium’s chief executive officer.
The transaction is expected to close in the next 30 days.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber and Krishna Chandra Eluri