Raven Industries Inc.’s Engineered Films division is expanding its film production capacity and enhancing its converting capabilities with the acquisition of Integra Plastics Inc.

Sioux Falls, S.D.-based Raven said in a news release that it purchased Integra, a privately held film and sheet manufacturer and converter, for about $48 million in cash and stock.

Integra, which employs 118 and is based in Madison, S.D., will now conduct business under the Raven Industries’ name.

“Raven’s Engineered Films division posted revenue growth of 18 percent in our fiscal 2015 first half. Combining Integra’s fabrication and conversion skill sets with Raven’s ability to develop value-added innovative products will better serve our customers, resulting in an entity that leads the reinforced polyethylene film and sheeting industry,” said Dan Rykhus, Raven’s president and CEO, in a statement.

Integra Plastics will provide Raven with additional extrusion and lamination capacity in Brandon as well as fabrication capability in Madison, S.D., and Midland, Texas. The management teams of the two companies will be integrated, with Anthony Schmidt, EFD’s vice president and general manager, responsible for the new combination.

Schmidt said that the new entity will help expand its major markets of agriculture, energy, geomembrane, industrial and construction.

Integra had 12-month sales of more than $35 million, according to Raven, and has been growing through the expansion of some of its facilities. In April, it added a 72,000-square-foot facility near its current facility in Madison. The company was founded in 1991.

Mick Green, president of Integra, said in a statement that by joining forces the combination will provide the companies with great scale and more opportunities for growth.

Raven is publicly traded on NASDAQ. It said that the transaction included a cash payment of $9 million and the issuance of 1.54 million shares of Raven common stock. Raven’s board of directors authorized a $40 million open-market stock repurchase program to help offset the shares issued under the merger agreement.

The Engineered Films division makes critical film and sheet for the containment and preservation of natural environmental resources. In November 2013, it added a 7-layer oriented barrier film line to its 330,000-square-foot Sioux City facility. Raven also is known for supplying an ultrathin film for the balloons used in Google Inc.’s pilot study to supply internet service in a remote New Zealand setting.

Raven ranked 49th in Plastics News’ most recent survey of North American film and sheet manufacturers, with sales of $147.6 million. Integra ranked No. 122, with estimated sales of $23 million.