The deal does not cover the packaging film lines and related operations associated with Tredegar’s Pottsville manufacturing site
Brazil-based nonwovens producer Fitesa has completed the acquisition of personal care films business from plastic films and aluminium extrusions manufacturer Tredegar.
Tredegar stated that the cash proceeds from the sale net of transaction costs, purchase price adjustments and transition services are estimated between $45m and $50m.
The deal does not cover the packaging film lines and related operations located at the Pottsville manufacturing site in Pennsylvania, which will be operated within the surface protection component of Tredegar’s PE films segment.
Tredegar will report the personal care films business in its third-quarter financial results as a discontinued operation.
Tredegar president and CEO John Steitz 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.”
In May this year, US-based chemical company Dow has joined forces with multiple packaging companies to supply medical isolation gowns, which are one of most used and needed personal protective equipment (PPE) for healthcare professionals battling the Covid-19 pandemic.
Partners include Magna International, 3M, Cadillac Products Packaging Company, DuPont, Fitesa, Landaal Packaging Systems, Plastixx FFS Technologies, Shurtape and Volkswagen.
Tredegar offers surface protection films for high technology applications in the global electronics industry, as well as specialised polyester films primarily for the Latin American flexible packaging market.
With around 2,500 employees, the company manages manufacturing facilities in North America, South America and Asia.