Leading US-stretch film producer AEP Industries (HQ: 125 Phillips Avenue, South Hackensack, NJ 07606, USA) has agreed to acquire the Borden Global Packaging business for approximately USD 360m. The deal which includes Borden's rigid and flexible packaging businesses in Europe, launches AEP as a global player in the highly competitive stretch film business. Prior to this acquisition AEP was ranked third in the US stretch film market with a capacity of 52,000 t. With the inclusion of Borden's operations there, it will have a combined market share of approximately 20% and more than 85,000 t of capacity. While Tenneco, which acquired Mobil's stretch film business in the USA last year, remains the market leader with nearly 100,000 t of capacity, it does not have the presence in Europe that this acquisition gives AEP Industries.

In Europe Borden's stretch film business is centred on its plant in Apeldoorn, the Netherlands, where its capacity is approximately 26,000 t. The combination of operations in Europe and North America has created one of the largest stretch film producers in the world.

The acquisition will also move AEP into PP film products and PVC stretch film, as well as rigid packaging. Borden's packaging business includes 12 facilities in Europe, seven in Asia, two each in South Africa and Canada as well as four plants in the US. 1995 sales were USD 625 million of which USD 300m were in Europe. AEP Industries operates five plants and employs 1,100. Sales for the year to 31st October 1995 were USD 242.9m with net income of USD 13.5m.