AEP Industries seals deal to grow portfolio

AEP Industries has acquired Transco Plastics Industries for $53m and targeted expansion of their presence in plastic packaging.

The agreement includes the purchase of machinery, equipment and related assets necessary to manufacture the performance films, specialty bags and industrial films of the Quebec-based firm.

AEP said the deal, planned to close in the next few weeks, is expected to gain $30m in annual net sales and it intends to relocate the manufacturing activities to its manufacturing sites throughout North America.

Brendan Barba, chairman, president and chief executive officer of AEP said: "This is a compelling investment opportunity for AEP that will gain meaningful business to our company and deliver a solid return on invested capital.

“With Transco we will expand our already robust presence in the plastic packaging industry and enhance our suite of products.”