Tredegar Completes Sale of Terphane to Oben Group
Tredegar (NYSE:TG) has completed the sale of Terphane, its flexible packaging films business in Brazil, to Oben Group. The transaction, announced on September 1, 2023, involves a net cash-free and debt-free base consideration of $116 million. Tredegar expects to receive after-tax net proceeds of $85 million, including $78 million at closing and $7 million from escrow funds within 120 days. The sale aligns with Tredegar's strategic goals and positions Terphane for better growth opportunities within Oben's global flexible films operations.
Tredegar (NYSE:TG) ha completato la vendita di Terphane, la sua attività di film per imballaggi flessibili in Brasile, a Oben Group. La transazione, annunciata il 1° settembre 2023, prevede un corrispettivo netto senza debiti e senza contante di 116 milioni di dollari. Tredegar si aspetta di ricevere proventi netti dopo tasse di 85 milioni di dollari, di cui 78 milioni di dollari al closing e 7 milioni di dollari da fondi in escrow entro 120 giorni. La vendita è in linea con gli obiettivi strategici di Tredegar e posiziona Terphane per migliori opportunità di crescita all'interno delle operazioni globali di film flessibili di Oben.
Tredegar (NYSE:TG) ha completado la venta de Terphane, su negocio de películas de empaque flexible en Brasil, a Oben Group. La transacción, anunciada el 1 de septiembre de 2023, implica una consideración base neta libre de efectivo y deuda de 116 millones de dólares. Tredegar espera recibir ingresos netos después de impuestos de 85 millones de dólares, incluyendo 78 millones de dólares al cierre y 7 millones de dólares de fondos en custodia dentro de 120 días. La venta se alinea con los objetivos estratégicos de Tredegar y posiciona a Terphane para mejores oportunidades de crecimiento dentro de las operaciones globales de películas flexibles de Oben.
트레데거 (NYSE:TG)가 브라질의 유연 포장 필름 사업인 테르파인(Terphane)을 오벤 그룹 (Oben Group)에 매각 완료했습니다. 이 거래는 2023년 9월 1일에 발표되었으며, 현금 및 부채가 없는 순 기준 가치로 1억 1600만 달러를 포함합니다. 트레데거는 세후 순수익으로 8500만 달러를 받을 것으로 예상하고 있으며, 이 금액은 7800만 달러가 매각 시점에, 700만 달러는 120일 이내 에스크로 자금으로 받을 계획입니다. 이번 매각은 트레데거의 전략적 목표와 일치하며, 테르파인을 오벤의 글로벌 유연 필름 사업 내에서 더 나은 성장 기회를 위한 자산으로 포지셔닝합니다.
Tredegar (NYSE:TG) a finalisé la vente de Terphane, son activité de films d'emballage flexibles au Brésil, à Oben Group. La transaction, annoncée le 1er septembre 2023, implique un montant de base net sans dette et sans liquidités de 116 millions de dollars. Tredegar prévoit de recevoir des produits nets après impôts de 85 millions de dollars, comprenant 78 millions de dollars à la clôture et 7 millions de dollars provenant de fonds de séquestre dans les 120 jours. Cette vente s'aligne avec les objectifs stratégiques de Tredegar et positionne Terphane pour de meilleures opportunités de croissance au sein des opérations mondiales de films flexibles d'Oben.
Tredegar (NYSE:TG) hat den Verkauf von Terphane, seinem Geschäft mit flexiblen Verpackungsfolien in Brasilien, an Oben Group abgeschlossen. Die Transaktion, die am 1. September 2023 bekannt gegeben wurde, umfasst eine netto cash- und schuldenfreie Basisvergütung von 116 Millionen Dollar. Tredegar erwartet nach Steuern Nettoerlöse von 85 Millionen Dollar, einschließlich 78 Millionen Dollar beim Abschluss und 7 Millionen Dollar aus Treuhandfonds innerhalb von 120 Tagen. Der Verkauf steht im Einklang mit den strategischen Zielen von Tredegar und positioniert Terphane für bessere Wachstumschancen innerhalb der globalen flexiblen Folienoperationen von Oben.
- Sale transaction value of $116 million
- Expected after-tax proceeds of $85 million
- Strategic divestment completion improving company focus
- Reduction in business diversification
- Loss of revenue stream from flexible packaging segment
Insights
The sale of Terphane represents a significant strategic transaction for Tredegar, with a
The deal's structure, including provisions for working capital adjustments and escrow funds, appears well-designed to protect both parties' interests. For Tredegar shareholders, this transaction provides substantial liquidity while potentially reducing exposure to the highly competitive flexible films market where scale advantages are crucial. The strategic rationale aligns with industry consolidation trends, as smaller players seek to optimize their market positions.
Commenting on the sale, John Steitz, Tredegar’s president and chief executive officer said, “The sale of Terphane completes a strategic goal that we’ve been working on for well over a year. We believe that Terphane will have greater scale and growth opportunities with Oben, a global player in the highly competitive flexible films industry. We wish the best for the employees and stakeholders of Terphane and Oben.”
Gonzalo Belaunde, Oben’s chief executive officer, said, “We are pleased to complete the acquisition of Terphane. We believe that combining our capabilities will improve the service and quality provided to our customers and markets. We welcome Terphane to the Oben team.”
On September 1, 2023, Tredegar entered into an agreement to sell Terphane to Oben for net cash-free and debt-free base consideration of
Tredegar is an industrial manufacturer with two primary businesses: custom aluminum extrusions for the North American building & construction, automotive and specialty end-use markets and surface protection films for high technology applications in the global electronics industry. With approximately 1,500 employees, Tredegar operates manufacturing facilities in
Oben is an important player in the market of inputs for the flexible packaging industry with more than 32 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
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 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, 2023. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031977412/en/
Neill Bellamy, 804-330-1211
neill.bellamy@tredegar.com
Source: Tredegar Corporation
FAQ
How much did Tredegar (TG) sell Terphane for?
When did Tredegar (TG) complete the sale of Terphane?
What are the expected net proceeds for Tredegar (TG) from the Terphane sale?
