Berry Plastics buys AEP Industries for $ 765 mn

Berry Plastics Group Inc, the provider of value-added plastic consumer packaging and engineered materials, has acquired AEP Industries Inc for $765 million, including AEP’s net debt.

AEP, the leading manufacturer of flexible plastic packaging films in North America, produces and markets a diverse line of flexible plastic packaging products for consumer, industrial, and agricultural applications. Headquartered in Montvale, New Jersey (USA), AEP operates 14 manufacturing facilities in the US and Canada and has approximately 2,600 employees. For the four quarters ended April 2016, AEP generated net sales of $1.1 billion, net income of $ 39 million, and adjusted EBITDA of $ 103 million.

Jon Rich, chairman and CEO of Berry Plastics, commented, “AEP, together with Berry’s engineered materials division, creates an impressive packaging film producer serving the North American market. 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.”