RICHMOND, Va. -- Tredegar, which makes plastic films and aluminum extrusions, said Monday it bought aluminum extrusion maker AACOA Inc. for about $50.8 million.
Tredegar said that the acquisition will add fabrication capabilities to the products and services of its subsidiary, The William L. Bonnell Co.
President and CEO Nancy Taylor said in a statement that the buyout is part of its strategy to grow and diversify within the manufacturing segment. Tredegar was searching for acquisitions that could help it expand into markets outside of building and construction.
The Richmond, Va., company said that the transaction was funded with financing under an existing $350 million line of credit.
AACOA is based in Elkhart, Ind., and has approximately 500 workers. The company runs production plants in Elkhart and Niles, Mich.
The buyout is expected to add to Tredegar's financial results in the first year.
Tredegar Corp.'s stock rose 45 cents, or 2.5 percent, to $18.19 in morning trading.