Loews Corporation Review 2019: Loews Corporation is an American conglomerate and it is headquartered in New York City. The majority-stake holdings of the firm include CNA Financial Corporation, Boardwalk Pipeline Partners, Diamond Offshore Drilling, Loews Hotels and Consolidated Container Company.
Loews Corporation positions itself as a value investor which has a long-term focus. In recent years, Loews has also allocated significant capital for share buybacks. In the three years which ended on December 31, 2012, Loews Corporation spent $1.3 billion repurchasing shares.
Loews Corporation Review 2019
Loews Corporation began in 1946. This was when Laurence Tisch persuaded his parents to invest $125,000 to purchase a resort hotel in Lakewood, N.J. At that time, Laurence’s brother Robert joined his business shortly thereafter. The two brothers began to invest their profits in expanding the hotel business. By 1956, both the brothers were in a position to build their first hotel called the Americana for $17 million in cash in Bal Harbour, Fla.
In the year 1959, the two brothers purchased a controlling interest in Loew’s Theatres, Inc. which was a nationwide chain of 102 movie theaters. This formed the foundation of modern-day Loews. The two founders developed a flexible, conservative value-oriented philosophy which still continues to be a cornerstone of Loews up until today.
The brothers soon diversified the Loews business, thus successfully venturing into a variety of areas. Loews thereby acquired Lorillard 1968, which was a tobacco company, the Bulova Watch Company in 1979 and CNA Financial in 1974. All through these acquisitions, Loews’ revenues grew from $100 million to more than $3 billion by a decade later.
Through Loews, Laurence Tisch briefly owned a significant portion of U.S. television and radio broadcaster CBS in the 1980s. He also approved the deal as Chairman of CBS that brought David Letterman from NBC to the network. With the sale of CBS for $5.4 billion to Westinghouse Electric Corporation, Loews Corporation’s involvement in CBS ended in 1995.
In the past two decades, Loews Corporation further diversified into the energy business. The company acquired Diamond M Drilling in 1989 and subsequently acquired ODECO in 1992, thereby adding 39 rigs. A year later, the combined businesses of the firm were renamed Diamond Offshore. The operating subsidiary went public in 1995. It provided contract drilling services for the energy industry globally.
Loews Corporation purchased Texas Gas Transmission, LLC in 2003, and, a year later, it bought Gulf South Pipeline Company. These two companies were consolidated to form a new entity called Boardwalk Pipeline Partners, LP. This went public in 2005. Boardwalk Pipeline provides facilities for the transportation, storage, gathering, and processing of natural gas and liquids for its customers and it was structured as a midstream master limited partnership (“MLP”).
Loews Corporation announced that it would offer 15 million shares of Carolina Groupon May 10, 2006, via an initial public offering. The proceeds were to be used for general corporate purposes. $740 million was the sales value.
Looking back at all these investments and acquisitions, it is clear that Loews Corporation has seen a boom ever since – and this strategic focus of the firm will hopefully be retained over the years.