Tredegar Sells Its Flexible Packaging Films Business

Tredegar Corporation has agreed to sell Terphane, its flexible packaging films business, to affiliates of Oben Group.

Terphane has about 500 employees with manufacturing sites in Cabo de Santo Agostinho, Brazil, and Bloomfield, New York. It is headquartered in São Paulo, Brazil, and exports to 29 countries.

Tredegar trades as TG on the New York Stock Exchange.

“Tredegar expects to realize after-tax cash proceeds from completion of the transaction of $85 million after deducting projected Brazil withholding taxes, escrow funds, U.S. capital gains taxes, and transaction costs,” according to a news release from the company.

Founded in Ecuador in 1991, Oben has more than 31 years of experience in the production of flexible films, with locations in more than 17 countries and sales to more than 40 countries in the Americas, Europe, and Africa.

“We believe that the purchase by Oben of Terphane will enhance the scale and growth opportunities in the keenly competitive global flexible packaging market,” said John Steitz, Tredegar’s president and CEO, in a statement.

Oben CEO Gonzalo Belaunde says the deal will strengthen Oben’s position as a global player in “the highly competitive flexible films industry, by expanding production capacity of BOPET (biaxially oriented polyethylene terephthalate) films and providing a great platform to expand production capacity for other films, especially BOPP (biaxially oriented polypropylene), in the U.S. and Brazil.”