Tredegar Completes Sale of Personal Care Films Business to Fitesa
November 02 2020 - 8:30AM
Business Wire
Tredegar Corporation (NYSE:TG) announced today that it has
completed the previously announced sale of its personal care films
(“Personal Care Films”) business to affiliates of Fitesa S.A.
Commenting on the sale, John Steitz, Tredegar’s president and
chief executive officer said, “We believe that in combination with
Fitesa, a worldwide leader in nonwoven fabrics, Tredegar’s former
personal care business will have improved opportunities for
growth.”
Cash proceeds from the sale net of transaction costs, purchase
price adjustments and transition services are estimated at $45 to
$50 million. Net cash income tax costs or benefits relating to the
transaction are expected to be negligible. The transaction excludes
the packaging film lines and related operations located at the
Pottsville, Pennsylvania manufacturing site (“Pottsville
Packaging”), which will now be reported within the Surface
Protection component of PE Films.
The Personal Care Films business will be reported in the
Company’s third quarter financial results as a discontinued
operation.
Tredegar Corporation is an industrial manufacturer with three
primary businesses: custom aluminum extrusions for the North
American building and construction, automotive and specialty
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 2019 sales from continuing operations of $826 million.
With approximately 2,500 employees, the Company operates
manufacturing facilities in North America, South America and
Asia.
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: possible disruptions to employee relationships and
business operations caused by the Personal Care Films transaction;
Tredegar’s ability to deliver transition services to the sold
business as required under the sale agreement in a cost-effective
manner; 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, 2019 and in Part II, Item 1A of Tredegar’s Quarterly
Report on Form 10-Q for the period ended March 31, 2020. 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/20201102005258/en/
Neill Bellamy Phone: 804/330-1211 E-mail:
neill.bellamy@tredegar.com
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