Plastic packaging products manufacturer in the US, AEP Industries has announced that the company, along with its Canadian subsidiary AEP Canada has agreed to acquire the films business from Transco Plastics Industries for about $5.3m.
The Canadian company's business includes the machinery and equipment and related assets that are necessary to manufacture the performance films, specialty bags and industrial films.
Expected to close within the next two weeks, the deal will gain about $30m in annual net sales from Transco's former customers.
AEP proposes to relocate the manufacturing activities associated with the Transco businesses to its manufacturing sites that are strategically located throughout North America.
AEP chairman, president and chief executive officer Brendan Barba said the latest acquisition is an investment opportunity for the company that will gain business to it and deliver a return on invested capital.
"With Transco we will expand our already robust presence in the plastic packaging industry and enhance our suite of products," Barba said.
