AEP Industries Inc. Completes Acquisition of Plastic Films Segment ...

Tag : plastic

Transaction Positions AEP as a Preferred Supplier of FlexiblePackaging
SOUTH HACKENSACK, N.J. , Oct. 31 /PRNewswire-FirstCall/ -- AEP Industries Inc. ( AEPI ) ("AEP") today announced that it has closed its acquisition ofsubstantially all of the assets of the Plastic Films segment ofAtlantis Plastics, Inc. ( ATPL ) for a purchase price of $99.2 million in cash. The assets include approximately $56.8 million of net working capital, which remains subject to a post-closingtrue-up and a corresponding purchase price adjustment (up to amaximum of $2.5 million upwards or downwards). As previously announced, AEP is financingthe transaction primarily through availability under its revolvingcredit facility as well as cash on hand. Concurrently with theclosing, the revolving credit facility was amended to increaseavailability from $125.0 million to $150.0 million .
The integration of the Plastic Films segment positions AEP as apreferred supplier of flexible packaging by bringing together twoproducers that are industry leaders across many product categories.Atlantis' Linear Stretch films business will become part of AEP'sStretch film operations and Atlantis' Custom Films division will befolded into AEP's Proformance Films operations, which will focus onhighly engineered specialty high-performance mono and coextrudedproducts. In addition, the Plastics Films institutional productsdivision will be folded into AEP's institutional products division.The combinations of these groups will provide unmatchedcapabilities in the industry and exponential improvement in theindividual product offerings. Plastic films products are used in avariety of applications, including storage, transportation, foodpackaging, appliance, building products and other commercial andconsumer applications.
"We are delighted with the closing of this transaction on time andare pleased that we will be able to provide all of our customerswith a larger selection of high quality stretch and custom filmsproducts," said Brendan Barba , Chairman and Chief Executive Officer of AEP Industries. "Thisacquisition immediately enhances the value of our businessportfolio, including strengthening our suite of products andservices to meet the demands of both companies' unique customers.The addition of the Plastic Films segment adds critical mass to analready successful business and will better position AEP to buildadditional shareholder value over the long term."
Mr. Barba continued, "We welcome our new customers and employees tothe AEP team and look forward to continuing and expanding ourbusiness to include all of them in the coming weeks."
About AEPI
AEP Industries Inc. manufactures, markets, and distributes anextensive range of plastic packaging products for thefood/beverage, industrial and agricultural markets. The Company hasoperations in the United States and Canada .
Except for historical information contained herein, statements inthis release are forward-looking statements that are made pursuantto the safe harbor provisions of the Private Securities LitigationReform Act of 1995. Forward-looking statements reflect management'scurrent views with respect to future events and financialperformance. Actual events and results may differ materially fromthose expected because of various risks and uncertainties,including, but not limited to, risks associated with generaleconomic conditions, the integration of the plastic films segmentof Atlantis Plastics with the Company and other risks described inthe Company's annual report on Form 10-K for the year ended October 31, 2007 and subsequent filings of the Company with the Securities andExchange Commission (SEC). Except as required by law, the Companyassumes no obligation to update the forward-looking statements,which are made as of the date hereof, even if new informationbecome available in the future.
SOURCE AEP Industries Inc.