Plastic packaging products manufacturer in the US, AEP Industries along with its Canadian subsidiary, AEP Canada has completed the previously announced acquisition of the films business from Transco Plastics Industries for about $5.3m.
Transco's business includes the machinery, equipment and related assets that are required to manufacture the performance films, specialty bags and industrial films.
With the transaction, which was originally announced in October 2012, AEP hopes to achieve about $30m in annual net sales from the former customers of Transco.
AEP chairman, president and chief executive officer Brendan Barba said the acquisition is expected to increase the company's suite of specialty plastics and industrial films products along with manufacturing capabilities.
"Through this purchase, we gain immediate access to an established customer base and intend to leverage this opportunity to achieve solid growth in annual net sales," Barba said.
The company which manufactures, markets and distributes a range of plastic packaging products, proposes to relocate the manufacturing activities associated with the new businesses to its manufacturing sites throughout North America.
