NEW YORK (TheStreet) -- Shares of Berry Plastics (BERY) - Get Report were advancing 5.85% to $45.81 in mid-morning trading on Thursday as the Evansville, IN-based plastic consumer packaging and engineered materials company said it would buy AEP Industries (AEPI) in a deal worth $765 million, including debt.
The acquisition will expand Berry Plastics' presence in North America, Reuters reports. AEP is based in South Hackensack, NJ and manufactures flexible plastic packaging films and can liners, among other products.
Berry Plastics said it expects the deal to be completed in December.
AEP shareholders will receive either $110 in cash or 2.5011 shares of Berry Plastics for every AEP share, Berry Plastics said in a statement. AEP shareholders will own approximately 5% of Berry Plastics once the deal is final.
AEP's long-term debt was valued at $209.7 million as of April 30, according to Reuters.
Shares of AEP were soaring 44.11% to $111 in mid-morning trading on Thursday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate BERRY PLASTICS GROUP INC as a Buy with a ratings score of B. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: