AEP Industries Inc. acquired an Italian film manufacturer Nov. 2, and announced that it has ended its eight-month alliance with Amcel Corp. of Watertown, Mass.
Termofilm srl, based in Florence, Italy, makes PVC and polyolefin shrink film. Terms of the transaction were not released. AEP's main interest is in the company's technology and patents.
``This is a technology purchase,'' Paul Feeney, AEP executive vice president and chief financial officer, said in a telephone interview. ``What's interesting is their technology in polyolefins with their patents and know-how.''
Feeney did not know how many patents Termofilm holds, but he said the company's European patents have applications in the United States.
Termofilm operates seven film lines and employs 25-30. It serves the industrial and food markets. The company joins about 21 other AEP foreign plants in 11 countries.
South Hackensack, N.J.-based AEP and Amcel ended their alliance in August. Amcel produces film and plastic cutlery. When the partnership was announced, Amcel added three extrusion lines and two injection molding lines at its Louisville, Ky., plant.
Neither company would comment on AEP's investment in Amcel and said it was more of a marketing alliance.
The partnership had two primary functions, according to Amcel President Brad Gordon. The first was for Amcel to manufacture products, mainly small bags, for AEP and its subsidiaries. But AEP was focused on its industrial products and could not spare the line time. Second, AEP agreed to sell Amcel's full product line in the western part of the country.
He added that the alliance was good for both firms and they maintain an amicable relationship. Amcel has not been affected negatively by the split, he said.
``We have more than replaced the pounds for AEP with new national retailers,'' Gordon said.
Likewise, AEP added internal capabilities that allowed the company to expand its can liner business independently.
AEP employs about 3,200. The firm manufactures cast, blown and coextruded films such as PVC, oriented polypropylene and polyethylene. The packaging products are used in the food and beverage, industrial and agricultural markets.
The company reported North American film sales of $469.6 million for the year ended Oct. 31, 1997. AEP estimates worldwide sales approached $960 million for this fiscal year.