Tredegar Agrees to Sell Terphane to Oben Group
01 September 2023 - 10:33PM
Business Wire
Tredegar Corporation (NYSE:TG) announced today that it has
agreed to sell its flexible packaging films (“Terphane”) business
to affiliates of Oben Group for net debt-free base consideration of
$116 million. Terphane, which solely comprises the flexible
packaging segment reported by Tredegar, has approximately 500
employees with manufacturing sites located in Cabo de Santo
Agostinho, Brazil and Bloomfield, New York, and headquarters
located in São Paulo, Brazil, and exports to 29 countries.
Tredegar expects to realize after-tax cash proceeds from
completion of the transaction of $85 million after deducting
projected Brazil withholding taxes, escrow funds, US capital gains
taxes and transaction costs. Actual after-tax proceeds may differ
from estimates due to possible changes in deductions during the
potentially lengthy interim period (expected to be between 8 and 14
months) to the closing date.
For the 12 months ended June 30, 2023, net sales and EBITDA from
ongoing operations for Terphane were $152 million and $16.4
million, respectively.
Closing of the transaction is contingent upon the satisfaction
of customary conditions, including clearance by competition
authorities in Brazil and Colombia.
John Steitz, Tredegar’s president and chief executive officer,
said, “We believe that the purchase by Oben of Terphane will
enhance the scale and growth opportunities in the keenly
competitive global flexible packaging market.”
Gonzalo Belaunde, Oben’s chief executive officer, said, “We are
excited about signing the agreement to acquire Terphane, a relevant
producer of BOPET films in Brazil. Completion of this transaction
will strengthen Oben’s position as a global player in the highly
competitive flexible films industry, by expanding production
capacity of BOPET films and providing a great platform to expand
production capacity for other films, especially BOPP, in the U.S.
and Brazil. We expect our combined operations and expertise, and
the synergies created by the transaction, to enhance our service to
clients. We look forward to the employees of Terphane joining the
Oben team.”
J.P. Morgan Securities LLC is serving as financial advisor to
Tredegar, and Hunton Andrews Kurth LLP is serving as U.S. corporate
counsel to Tredegar.
Tredegar is an industrial manufacturer with three primary
businesses: custom aluminum extrusions for the North American
building & construction, automotive and specialty end-use
markets; surface protection films for high technology applications
in the global electronics industry; and specialized polyester films
primarily for the Latin American flexible packaging market.
Tredegar had 2022 sales of $939 million. With approximately 1,800
employees, Tredegar operates manufacturing facilities in North
America, South America, and Asia.
Oben is an important player in the market of inputs for the
flexible packaging industry with more than 31 years of experience
in the production of state-of-the-art flexible films having
strategic locations in more than 17 countries with sales to more
than 40 countries in the Americas, Europe and Africa. It has a
diversified portfolio that includes BOPP, BOPET, BOPA, BOPE, CPP,
Extrusion Coated as well as Thermoformed Products.
Forward-Looking Statements
Some of the information contained in this press release may
constitute “forward-looking statements” within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. When we use the words “believe,” “estimate,”
“anticipate,” “appear to,” “expect,” “project,” “plan,” “likely,”
“may” and similar expressions, Tredegar does so to identify
forward-looking statements. Such statements are based on Tredegar’s
then current expectations and are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those addressed in the forward-looking statements. It is
possible that actual results may differ, possibly materially, from
the forward-looking statements provided in this press release.
Accordingly, you should not place undue reliance on these
forward-looking statements. Factors that could cause actual results
to differ from expectations include, without limitation, the
following: Tredegar’s inability to complete the proposed
transaction in a timely manner (or at all) and at the prices it has
assumed; possible disruptions to customer and employee
relationships and business operations caused by the proposed
transaction; and the other factors discussed in the reports
Tredegar files with or furnishes to the Securities and Exchange
Commission (the “SEC”) from time to time, including the risks and
important factors set forth in additional detail in “Risk Factors”
in Part I, Item 1A of Tredegar’s Annual Report on Form 10-K for the
year ended December 31, 2022 and in Part II, Item 1A of Tredegar’s
Quarterly Report on Form 10-Q for the period ended June 30, 20223.
Readers are urged to review and consider carefully the disclosures
Tredegar makes in its filings with the SEC.
Tredegar does not undertake, and expressly disclaims any duty,
to update any forward-looking statement made in this press release
to reflect any change in management’s expectations or any change in
conditions, assumptions or circumstances on which such statements
are based, except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230901540975/en/
Tredegar Corporation Neill Bellamy, 804-330-1211
neill.bellamy@tredegar.com
Tredegar (NYSE:TG)
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