Procurement News Notice |
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| PNN | 3907 |
| Work Detail | Berry Plastics Group is acquiring flexible packaging films maker AEP Industries in a $765m (£580m) deal. The Evansville, Indiana-based Berry Plastics said stockholders of New Jersey-based AEP will receive either $110 (£83) in cash or 2.5011 shares of Berry Plastics stock for each of their shares. The payment is subject to a split between cash and shares “to ensure that 50% of the total outstanding AEP shares are exchanged for cash consideration,” Berry Plastics said. AEP shareholders will own 5% of Berry Plastics on a fully diluted basis once the deal closes. “AEP, together with Berry’s Engineered Materials Division, creates an impressive packaging film producer serving the North American market,” said Berry Plastics chief executive Jon Rich. “This unique combination offers the opportunity for significant value creation for Berry and AEP shareholders alike as we realise procurement and operating cost savings across the two organisations.” AEP, with 2,600 employees, has 14 manufacturing sites in the United States and Canada. Markets served include consumer, industrial and agricultural. AEP had net sales of $1.1bn (£834m) during the four quarters ended in April with net profit of $39m (£30m) and adjusted earnings before interest, taxes, depreciation of amortisation (Ebitda) of $103m (£78m). Berry ranked eighth on Plastics News’ most recent survey of North American film and sheet manufacturers, with estimated relevant sales of $980m (£743m). AEP ranked sixth. |
| Country | United States , Northern America |
| Industry | Plastic |
| Entry Date | 03 Sep 2016 |
| Source | http://www.prw.com/article/20160826/PRW/160829896/berry-plastics-buying-aep-for-765m |
