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Berry Plastics to buy AEP Industries for 42.9% premium

Staff Writer |
Berry Plastics Group will buy AEP Industries in a deal valued at $765 million, including debt.

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Based on Berry Plastics' close on August 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. AEP's long-term debt stood at $209.7 million as of April 30.

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.

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