Evansville-based Berry Plastics Group Inc. (NYSE: BERY) has completed the acquisition of New Jersey-based AEP Industries Inc. (Nasdaq: AEPI). The announcement comes two days after AEP shareholders approved the deal.
Berry says it paid $297 million for all outstanding shares of AEP stock and equity awards and financed the cash consideration of the deal through a $500 million loan. Additionally, the company paid $164 million to retire AEP’s outstanding debt.
"The acquisition of AEP has given us the opportunity to expand the breadth of product offerings and production capacity within our Engineered Materials Division, enabling us to better serve our customers," said Jon Rich, chief executive officer of Berry Plastics. "Moreover, we anticipate opportunity for significant value creation for our shareholders, as we realize synergies in both our operations and in our materials procurement."
Berry announced the acquisition in August. At that time, Rich said the deal could open the door for larger, long-term contracts.
AEP employs about 2,600 workers in the U.S. and Canada. Berry did not say whether any jobs would be affected as a result of the acquisition.