Sector News

Berry Plastics to buy AEP Industries

August 26, 2016
Chemical Value Chain

Berry Plastics Group Inc said it would buy AEP Industries Inc, which makes stretch wraps and can liners, in a deal valued at $765 million, including debt, to expand its presence in North America.

Based on Berry Plastics’ close on Aug. 23, AEP shareholders will receive either $110 in cash or 2.5011 shares of Berry Plastics for each AEP share.

The offer represents a premium of 42.9 percent to AEP’s Wednesday close.

Upon closing of the stock and cash deal, AEP shareholders will own about 5 percent of Berry Plastics on a fully diluted basis, the plastic packaging products maker said on Thursday.

AEP’s long-term debt stood at $209.7 million as of April 30.

“AEP, together with Berry’s Engineered Materials Division, creates an impressive packaging film producer serving the North American market,” Berry Plastics Chief Executive Jon Rich said.

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.

In July, Berry Plastics offered to buy Avintiv Inc, which makes materials used in products ranging from diapers to disinfectant wipes, for about $2.45 billion in cash from Blackstone Group LP.

Montvale, New Jersey-based AEP’s flexible plastic packaging products are used in the consumer, industrial and agricultural markets.

The deal, which is expected to be completed in December, will add to Berry Plastics’ adjusted net income and adjusted free cash flow.

Citigroup is the financial adviser to Berry Plastics, while BofA Merrill Lynch is advising AEP Industries.

By Arunima Banerjee

Source: Reuters

comments closed

Related News

October 2, 2022

Trinseo announces potential closure of Boehlen, Germany Styrene Plant

Chemical Value Chain

Trinseo (NYSE: TSE), a specialty material solutions provider, announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany.

October 2, 2022

Celeste Mastin appointed H.B. Fuller President and CEO, succeeding Jim Owens upon his retirement

Chemical Value Chain

H.B. Fuller Company announced that Celeste Mastin, Executive Vice President and Chief Operating Officer, will succeed Jim Owens as H.B. Fuller’s President and Chief Executive Officer, effective December 4, 2022. Upon assuming the role, Mastin will also join the Company’s Board of Directors, replacing Owens, who will be retiring.

October 2, 2022

LyondellBasell realigns executive team, forms circular and low-carbon solutions business

Chemical Value Chain

New LyondellBasell CEO Peter Vanacker, who joined the company from Neste in May, today named his senior executive team and outlined organizational changes, including creation of a circular and low-carbon solutions business. All changes will be effective 1 October.