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AEP Industries Inc. Completes Purchase Of Films Business From Transco Plastics Industries Ltd.

SOUTH HACKENSACK, N.J., Nov. 8, 2012 /PRNewswire/ --  AEP Industries Inc. (Nasdaq: AEPI, the "Company" or "AEP") today announced that the Company, along with its Canadian subsidiary, AEP Canada Inc.,  has completed the previously announced purchase of the machinery and equipment and related assets necessary to manufacture the performance films, specialty bags and industrial films of Transco Plastics Industries Ltd. ("Transco").    

AEP purchased the films business for approximately $5.3 million, excluding a one-year commission and transition service costs, and expects to gain approximately $30 million in annual net sales from Transco's former customers.  

"We are pleased to complete the purchase of Transco's films business, which expands our suite of specialty plastics and industrial films products and manufacturing capabilities," said Brendan Barba, Chairman, President and Chief Executive Officer of the Company.  "Through this purchase, we gain immediate access to an established customer base and intend to leverage this opportunity to achieve solid growth in annual net sales.  We expect this transaction will support our ongoing growth strategy and track record of delivering a solid return on our investments to enhance value for shareholders."

As previously announced, the Company intends to relocate the manufacturing activities associated with the Transco businesses to its strategically located manufacturing sites throughout North America. 

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the consumer, industrial and agricultural markets.  The Company has manufacturing operations in the United States and Canada.

Contact:

Paul M. Feeney


Executive Vice President, Finance


and Chief Financial Officer


AEP Industries Inc.


(201) 807-2330


feeneyp@aepinc.com

 

SOURCE AEP Industries Inc.

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