Tredegar Corp (TG.N) 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.
(Reporting By Steve James; Editing by Maureen Bavdek)