Abstract: Apparatus for applying plastic handles to tubular plastic bag stock. A drive mechanism feeds the bag stock through the apparatus intermittently in discrete lengths and each length corresponds to the length of a bag. A float piece is positioned inside the bag stock and is restrained to remain in a predetermined position as the bag stock is fed over the float piece by the drive mechanism. A handle transport mechanism feeds pairs of handles to respective positions one at either side of the float piece immediately adjacent respective outer sides of the bag stock and a clamping mechanism moves axially to apply a compressive force whereby the bag stock is clamped between respective handles and the float piece. A cutter is movable to pierce the bag stock inside the handles and an actuator is provided to move the clamping mechanism and the cutter assembly in sequence to first create said compressive force and then to pierce the bag stock.