Evansville-based Berry Plastics Group Inc. (NYSE: BERY) has announced a $2.45 billion acquisition of AVINTIV Inc. The North Carolina-based company employs more than 4,500 global employees and is a supplier to many of Berry Plastics' existing customers.
The deal is set to close by the end of the year. Berry Plastics says the merger will create around $50 million in annual savings.
Last year, Berry Plastics completed a $135 million acquisition of Rexam's Healthcare Containers and Closures business. The transaction involved eight plants and approximately 1,500 workers.
To finance the acquisition, the company will consider raising a "modest amount" of equity. The deal could put Berry Plastics up to more than $7 billion in annual sales.
Berry Plastics says AVINTIV has "the broadest range of process technologies in the industry." It serves as a supplier to industrial product manufacturers in personal care, medical, industrial and agricultural fields.
Berry Chairman and Chief Executive Officer Jon Rich says "the combination of Berry Plastics and AVINTIV creates a global leader in plastics packaging and engineered specialty materials with enhanced technology, material, and commercial capabilities to more broadly serve our customers."