SOUTH HACKENSACK, N.J.-AEP Industries Inc. will buy Borden Inc.'s global packaging business for about $360 million. Last year, Borden's packaging unit had worldwide sales of about $625 million, mainly flexible film for stretch wrap and other uses, and rigid plastic packaging. The North American share of that business is about $250 million, with Europe and Asia making up $300 million and $75 million, respectively.
Under the June 20 pact, AEP will give Borden $280 million in cash and at least $80 million in new shares of AEP stock. Borden will own at least 34 percent of the South Hackensack company.
The deal expands AEP's pallet-wrap business and adds oriented polypropylene film to its product line. Borden's North American sales will vault AEP, with $242.9 million in film sales for fiscal 1995, into the top 10 North American film and sheet extruders, according to Plastics News' estimates.
Borden, based in Columbus, Ohio, announced its plan to divest the packaging business in January. However, the firm will keep its packaging businesses in South America, and continue to operate them as part of Borden Chemical Inc.
Borden Inc., with 1995 sales of about $5.9 billion, was taken private in a leveraged buyout in March 1995 by the investment firm Kohlberg Kravis Roberts & Co.
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Shelburne buys Carlisle molding plant
SOUTH BURLINGTON, VT. - Shelburne Plastics, a blow molder based in South Burlington, has purchased a Jessup, Md., blow molding plant from Carlisle Plastics Inc.
The Jessup location was the fourth of four blow molding plants once operated by Carlisle, a major manufacturer of plastic garment hangers, films and sheeting products. Shelburne makes high density polyethylene bottles for the dairy, water and juice, and specialty product markets.
Shelburne President E.F. Torvend would not disclose the purchase price for the plant, but said Shelburne plans to expand the bottle product lines. The acquisition gives Shelburne the ability to offer colored HDPE containers along with its current line of natural-colored stock bottles.
Carlisle spun off the four blow molding operations, which together had about $31 million in 1995 sales, shortly before it was acquired in May by Tyco International Inc., an Exeter, N.H., pipe and film maker. The plants operated as Bercon Plastics.
Village makes rulings on plastic pipes
DOWNERS GROVE, ILL. - Downers Grove, a Chicago suburb, has banned one type of plastic pipe but reversed a ban on another.
The Village Council banned the use of cellular-core PVC sewer pipe. Michael Little, director of code enforcement, recommended the move. He said the lightweight pipe can crack when installed during cold weather. Rocks used as fill material can damage the pipe, he said.
At the same time, Downers Grove reversed a ban on chlorinated PVC plumbing. A state code allows CPVC, but Little said that when the village adopted the code two years ago, local officials decided not to allow CPVC in Downers Grove. They now want to allow homeowners to use CPVC for do-it-yourself projects. Village officials still prefer that builders use copper plumbing in new construction, he said.
Plastics recycling rate reaches 18%
WASHINGTON - The plastics industry recycled 18 percent of all plastic bottles and rigid containers last year, an increase of 0.8 percent over 1994, according to data released June 20 by the American Plastics Council of Washington.
The recycling rate for bottles alone was 22 percent. More resin was recycled - 1.15 billion pounds of bottles and containers - though the volume of virgin resin continued to swell, to 6.47 billion pounds. Earlier this year, APC said it had abandoned its 1991 goal to recycle 25 percent of all plastic bottles and containers by 1995.
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