MOSCOW (MRC) -- Global plastic films and aluminium extrusions manufacturer Tredegar has agreed to sell its flexible packaging films business, Terphane, to Oben Group affiliates, said Packaging-gateway.
Terphane’s sale has been finalised for a net debt-free base consideration of USD116m. Headquartered in Brazil’s Sao Paulo, Terphane exports to nearly 29 countries, with its manufacturing facilities located in Cabo de Santo Agostinho, Brazil and Bloomfield, New York.
Currently, Terphane employs around 500 people. Tredegar anticipates realising USD85m in after-tax cash proceeds from the completion of this transaction, after subtracting expected withholding taxes by Brazil, escrow funds and US capital gains taxes.
However, Tredegar said that this estimated actual after-tax proceeds “may differ” at the conclusion of deal. This difference can be due to possible changes in deductions during “potentially lengthy interim period”, expected to range between 8 and 14 months, before the closing date.
Tredegar president and CEO John Steitz said: “We believe that purchase by Oben of Terphane will enhance scale and growth opportunities in keenly competitive global flexible packaging market.” Completion of this deal is now subject to the fulfilment of some customary conditions, including clearance from competition authorities in Brazil and Colombia.
Tredegar’s financial advisor and the US corporate counsel for this transaction were JP Morgan Securities and Hunton Andrews Kurth, respectively.
We remind, SK Innovation has become the first in the oil refining industry to complete a Life Cycle Assessment (hereafter, LCA) for its entire oil-petrochemical related products. The company aims to strengthen its response to domestic and international clients who are increasingly focused on ESG evaluation standards, and plans to utilize the findings for process improvement data.