Tredegar has officially completed the sale of its flexible packaging films business, Terphane, headquartered in Brazil, to Oben Group (“Oben”), a move previously announced earlier this year.
John Steitz, Tredegar’s President and CEO, remarked on the strategic significance of the transaction: “The sale of Terphane fulfills a strategic goal that we have pursued for over a year. We believe that Terphane will achieve greater scale and growth opportunities as part of Oben, a global leader in the competitive flexible films industry. We extend our best wishes to the employees and stakeholders of both Terphane and Oben.”
Gonzalo Belaunde, CEO of Oben Group, expressed enthusiasm for the acquisition: “We are excited to welcome Terphane to Oben. We believe that our combined capabilities will enhance the quality and service we provide to our customers and markets.”
Tredegar entered into the agreement on September 1, 2023, to sell Terphane for a net cash-free and debt-free base consideration of $116 million. The transaction is expected to yield after-tax net proceeds of $85 million, including $78 million at closing and an additional $7 million from the release of certain escrow funds within 120 days of closing. These amounts are based on Terphane’s estimated balance sheet as of the closing date and may be adjusted during the Post-Closing Review Period as final accounts are settled.
Tredegar is an industrial manufacturer with primary operations in custom aluminum extrusions for various North American markets and surface protection films for high-tech applications in the global electronics industry. The company employs around 1,500 people and maintains manufacturing facilities in North America and Asia.
Oben Group, with over 32 years of experience, is a significant player in the flexible packaging industry, offering a wide range of advanced films and thermoformed products. The company operates strategically across more than 17 countries and serves over 40 countries in the Americas, Europe, and Africa.
Forward-Looking Statements
This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, related to expectations, projections, and plans. Terms like “believe,” “estimate,” “anticipate,” and “expect” indicate these statements, which are based on current expectations and are subject to risks and uncertainties that could cause actual results to vary. Readers should not place undue reliance on these statements. Factors that could impact actual outcomes include those outlined in Tredegar’s filings with the Securities and Exchange Commission (SEC), such as the “Risk Factors” section of the company’s Annual Report on Form 10-K for the year ended December 31, 2023. Tredegar disclaims any obligation to update forward-looking statements except as required by law.
