Film and sheet manufacturer AEP Industries Inc., and its Canadian subsidiary AEP Canada Inc., is buying the assets of Quebec-based flexible packager Transco Plastics Industries Ltd. for approximately US$5.3 million.
The company will gain about US$30 million in annual net sales from Transco’s former customers, according to a news release from AEP.
The transaction is expected to close within the next two weeks.
According to South Hackensack, N.J.-based AEP, it intends to relocate the manufacturing activities associated with the Transco businesses to its manufacturing sites throughout North America. AEP has 11 plants in the U.S. and one in West Hill, Ont.
"This is a compelling investment opportunity for AEP that will gain meaningful business to our company and deliver a solid return on invested capital," said Brendan Barba, AEP’s chairman, president and CEO. "With Transco we will expand our already robust presence in the plastic packaging industry and enhance our suite of products."
AEP manufactures, markets, and distributes a range of plastic packaging products for the consumer, industrial, and agricultural markets. The publicly traded company reported sales of approximately US$292 million in the third quarter of 2012.