* Acquires AACOA for $50.8 million
* Expects deal to boost earnings in first year
* Tredegar stock rises more than 3 percent
Oct 1 Tredegar Corp said on Monday that
its subsidiary Bonnell Aluminum has acquired 100-percent
ownership of AACOA Inc, a U.S. manufacturer of extruded aluminum
for machinery and equipment.
The purchase price of about $50.8 million was funded using
financing under Tredegar`s existing $350 million credit
facility, the company said.
Virginia-based Tredegar, which makes plastic films and
extruded aluminum products, said it expects the acquisition to
add to earnings in the first year following the transaction.
The acquisition will add fabrication capabilities to
Bonnell`s current products and services while providing AACOA
with large press capabilities and enhanced geographic sales
coverage in a variety of end-use markets.
Privately held AACOA is based in Elkhart, Indiana, and has
operations there and in Niles, Michigan. It employs 500 people
and specializes in anodizing, serving the consumer durables,
machinery and equipment, and transportation markets.
Tredegar's stock was 3.49 percent higher at $18.36 in
morning trading on the New York Stock Exchange.