Berry Plastics buys flexible packager AEP
The deal is valued at US$765 million.
Packaging supplier Berry Plastics Group Inc. is acquiring AEP Industries Inc., which makes stretch wraps and can liners, in a deal valued at US$765 million.
Headquartered in Montvale, N.J., AEP manufactures flexible plastic packaging films for the North American market. The company operates 13 manufacturing facilities in the U.S. and 1 in Toronto, Ont., and has approximately 2,600 employees in total. AEP reported net sales of US$1.1 billion for the four quarters ended April 2016.
“AEP, together with Berry’s Engineered Materials Division, creates an impressive packaging film producer serving the North American market,” said Berry Plastics CEO Jon Rich said in a statement. The deal will combine the two company’s “highly complementary products and customers in North America,” he added.
Evansville, Ind.-based Berry Plastics, which makes duct tapes, spray adhesives, and food wrap films, said it will fund the cash component of the deal with existing cash and a new term loan.