AEP Industries buys assets of Montreal's Transco Plastics

Published: October 22, 2012 6:00 am ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Film & Sheet

SOUTH HACKENSACK, N.J (Oct. 22, 12:50 p.m. ET) — AEP Industries will purchase the assets of flexible packaging manufacturer Transco Plastics Industries Ltd. for about $5.3 million.

AEP and its Canadian subsidiary, AEP Canada Inc., will acquire Transco’s machinery, equipment and related assets. The company will gain about $30 million in annual net sales from Transco’s former customers, according to a news release from AEP.

The deal is expected to close in the next two weeks.

Transco operates one plant at its headquarters in Montreal and has about 150 employees. AEP plans to relocate manufacturing from Transco to AEP facilities throughout the North America, according to the release.

AEP has 11 plants in the United States and one in West Hill, Ontario.

“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, chairman, president and CEO of AEP, in the release. “With Transco we will expand our already robust presence in the plastic packaging industry and enhance our suite of products.”

Transco makes retail and industrial packaging, shrink films, bags and mailers, and offers extrusion, conversion and printing operations at its plant. The firm reported sales of approximately $74 million in 2011, including $56 million in film and sheet sales, according to Plastics News’ survey of the film and sheet industry.

The acquisition is AEP’s second in about a year. In October 2011 the company announced its acquisition of Webster Industries, a manufacturer of private-label food and trash bags, for a purchase price of about $26.7 million, according to filings with the Securities and Exchange Commission.

AEP, based in South Hackensack, N.J., makes a variety of packaging films for consumer, industrial and agricultural markets. The publicly traded company reported sales of $291.9 million in the third quarter of 2012, up from $246 million for the year-ago period.

AEP is North America’s seventh largest film and sheet manufacturer with estimated sales of $1.2 billion in 2011, according to Plastics News’ rankings.


Comments

AEP Industries buys assets of Montreal's Transco Plastics

Published: October 22, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Irish packaging group Smurfit Kappa opens film plant in Spain

November 26, 2014 6:00 am ET

Global packaging group Smurfit Kappa Group plc has responded to growing demand for its bag-in-box liquid container/dispensers by opening a new plant...    More

Image

Deal adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew...    More

Image

Onex buying packaging group SIG Combibloc

November 24, 2014 9:05 am ET

ex Corp. will buy SIG Combibloc Group, the Switzerland-based manufacturer of aseptic carton packaging and plastics closures from New Zealand's Rank Gr...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events