Court Enters Order Approving AEP Industries Inc.'s Acquisition of Plastic Films Segment of Atlantis Plastics, Inc.
October 06 2008 - 4:10PM
PR Newswire (US)
Transaction Expected to Close on or Before October 30, 2008 SOUTH
HACKENSACK, N.J., Oct. 6 /PRNewswire-FirstCall/ -- AEP Industries
Inc. (Nasdaq: AEPI, the "Company" or "AEP") today announced that
the United States Bankruptcy Court for the Northern District of
Georgia-Atlanta Division entered an order approving the previously
announced acquisition of substantially all of the assets of the
Plastic Films segment of Atlantis Plastics, Inc. (OTC:ATPL) by AEP.
Atlantis did not receive any "higher or better" offers from a
qualified bidder and therefore there was no Court sponsored auction
for the Plastic Films segment. AEP's purchase price remains $87.0
million in cash, subject to a net working capital adjustment, plus
the assumption of certain liabilities. The transaction is expected
to close on or before October 30, 2008, subject to other customary
closing conditions set forth in the asset purchase agreement. "We
are pleased that AEP has received Court approval to purchase the
Plastic Films segment of Atlantis and look forward to completing
this transaction at the end of the month," said Brendan Barba,
Chairman and Chief Executive Officer of AEP Industries. "The
Plastic Films segment represents a unique strategic opportunity to
continue to build long-term value for our shareholders by enhancing
our position as the preferred supplier of flexible packaging
solutions. The Plastic Films segment immediately enhances the value
of our business portfolio by strengthening our suite of products
and services to meet the demands of both companies' customers." Bud
Philbrook, Chief Executive Officer and President of Atlantis
Plastics, said, "The approval of AEP as the winning bidder gives us
confidence in the future of the Plastic Films segment and its
ability to continue meeting customers' needs. We believe the
customers and employees of this division will have a good home at
AEP." As previously announced, AEP intends to finance the
transaction through a combination of cash on hand and availability
under its revolving credit facility. Following the close of the
transaction, the Plastic Films segment will be part of AEP's
stretch and custom films divisions. The Plastic Films segment
operates six manufacturing facilities throughout the United States.
About AEPI AEP Industries Inc. manufactures, markets, and
distributes an extensive range of plastic packaging products for
the food/beverage, industrial and agricultural markets. The Company
has operations in the United States and Canada. Except for
historical information contained herein, statements in this release
are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements reflect management's current
views with respect to future events and financial performance.
Actual events and results may differ materially from those expected
because of various risks and uncertainties, including, but not
limited to, risks associated with general economic conditions, the
operations of Atlantis Plastics, Inc. in bankruptcy, the bankruptcy
proceedings, and other risks described in the Company's annual
report on Form 10-K for the year ended October 31, 2007 and
subsequent filings of the Company with the Securities and Exchange
Commission (SEC). Except as required by law, the Company assumes no
obligation to update the forward-looking statements, which are made
as of the date hereof, even if new information become available in
the future. Contacts: Paul M. Feeney Executive Vice President,
Finance and Chief Financial Officer AEP Industries Inc. (201)
807-2330 DATASOURCE: AEP Industries Inc. CONTACT: Paul M. Feeney,
Executive Vice President, Finance and Chief Financial Officer of
AEP Industries Inc., +1-201-807-2330,
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