Berry Plastics finalizes acquisition of AEP Industries

Berry Plastics Group Inc. (Evansville, IN) has announced completion of its previously announced acquisition of AEP Industries Inc. (Montvale, NJ).

A supplier of value-added plastic consumer packaging, nonwoven specialty materials and engineered materials, Berry said that the acquisition would allow it to expand product offerings and production capacity within its Engineered Materials division. AEP brands itself as a single source for polyethylene films and provider of packaging services to industrial, food and beverage, agricultural and other sectors.

Berry issued 6.5 million common shares and paid $297 million as merger consideration in exchange for all of the outstanding shares of AEP common stock and outstanding AEP equity awards. Additionally, Berry paid $164 million to retire outstanding AEP debt. Berry financed the cash consideration of the acquisition with a new $500 million seven-year term loan. Including the new shares issued, Berry's outstanding common stock has increased to approximately 129 million shares, resulting in a market capitalization of approximately $6.5 billion.

“We anticipate opportunity for significant value creation for our shareholders, as we realize synergies in both our operations and in our materials procurement,” said Jon Rich, Chairman and CEO of Berry Plastics.