Acquisition of Canadian Agricultural Film Business
August 5, 2007
British Polythene Industries PLC announced today the acquisition of the AT Films business of AT Plastics Inc (Canada), a subsidiary company of Celanese Corporation, for a cash consideration of US$12 million subject to an adjustment to reflect the book value of working capital at completion. As at 31 July 2007 the working capital was US$11 million.
AT Films manufactures polythene film products for the horticultural and agricultural markets, mainly in North America. The company has facilities in Edmonton and Westlock, Alberta, Canada and employs 85 people. In the last financial year to 31 December 2006, AT Films sold 12,500 tonnes of polythene film products with an annual value of US$ 35 million.
Commenting on the acquisition British Polythene Industries PLC Chairman Cameron McLatchie said: "This acquisition enables us to progress our strategy of developing our international agricultural and horticultural films business. In addition to offering new geographic markets, AT Films brings new products to BPI including a range of large agricultural bags which are used to store silage and grain. The stored grain is subsequently used as animal feed or as raw material in the manufacture of biofuels. We believe that there is significant opportunity to expand sales of this product as global demand for biofuels increases."