Foam cup manufacturer Dart Container Corp. will acquire Solo Cup Co. in a transaction valued at approximately $1 billion.

Both companies are in the consumer and foodservice disposable packaging business.

The transaction, which is subject to regulatory approval, is expected to close by the third quarter of this year. The two companies will continue to operate independently until government approval is secured and the transaction closes.

The integrated organization will be a private company known as Dart Container Corp. Dart expects to continue offering products under the Solo brand—including the iconic red Solo cup, according to the news release.

Dart Container Corp. manufactures more than 600 products and has facilities throughout the U.S. and in Canada, Mexico, Argentina, Brazil, Australia, and the United Kingdom. It also has UV-curable ink manufacturing, machinery manufacturing, and polymer production facilities.

"Our acquisition of Solo will allow us to provide even greater value to our customers in the future," stated Robert C. Dart, CEO of Dart Container, in a news release. "It will enable customers to purchase a wider range of products, made from a greater variety of materials with varying functional and environmental attributes -- all from a single vendor. Both companies have an extensive history in the industry and will bring together valuable experience, traditions, and complementary, high-quality products."

Solo is majority-owned by the family of its founder, Leo J. Hulseman, and is also a portfolio company of Vestar Capital Partners IV, L.P. Dart Container is a privately-owned company founded by William A. Dart.

"Solo has made great strides over the past several years in improving its operating efficiency, information systems and the caliber of the talent within the organization," said Robert M. Korzenski, CEO of Solo Cup. "Dart's leadership team has shown a high level of respect for what Solo has accomplished and I believe we are putting the company in the right hands to succeed and grow going forward."