US-based Berry Plastics Group has concluded a deal to acquire AEP Industries for $765m.
Berry has issued common shares with a total value of 6.5m and paid $297m as a merger consideration, in exchange for all of the outstanding shares of AEP common stock and outstanding AEP equity awards.
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Furthermore, Berry has paid $164m to retire AEP's outstanding debt and taken a $500m loan to complete the deal, which has increased the company’s outstanding common stock to around 129 million shares.
Plastics Group chairman and CEO Jon Rich said: “The acquisition of AEP has given us the opportunity to expand the breadth of product offerings and production capacity within our Engineered Materials Division, enabling us to better serve our customers.
“Moreover, we anticipate opportunity for significant value creation for our shareholders, as we realise synergies in both our operations and in our materials procurement.”
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With manufacturing capabilities in flexible plastic packaging films, AEP currently serves the consumer, industrial, and agricultural markets.
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By GlobalDataThe company has 14 manufacturing facilities in the US and Canada and employs around 2,600 people.
Berry Plastics’ current portfolio of products includes open-top and closed-top packaging, polyethylene-based plastic films, industrial tapes, medical specialties, heat-shrinkable coatings, specialty laminates and bulk bags.
