Tredegar’s personal care films business operates manufacturing sites in the US, Netherlands, Hungary, Brazil and India
Brazilian nonwovens producer Fitesa has agreed to acquire personal care films from plastic films and aluminum extrusions manufacturer Tredegar.
At present, Tredegar is managing the personal care films business as the component of its PE films segment.
With around 400 employees, the personal care films business has manufacturing sites in Terre Haute of Indiana, Kerkrade of Netherlands, Rétság of Hungary, Diadema of Brazil and Pune of India.
The deal does not include packaging film lines and operations relating to Tredegar’s Pottsville site
The proposed deal does not include the packaging film lines and operations relating to the Pottsville site in Pennsylvania, which is presently reported by Tredegar within the personal care component of its PE films segment.
Net cash proceeds from the deal are expected between $40m and $45m after transaction costs, purchase price adjustments and transition services.
According to Tredegar, the sales and EBITDA from ongoing operations for the personal care Films business to be retained were $133m and negative $1.7m for the one year ended on 30 June.
Subject to the satisfaction of customary conditions, the deal is expected to be completed during the fourth quarter of this year.
Based in Richmond of Virginia, Tredegar has manufacturing facilities in North America, South America, Europe, and Asia. With around 3000 employees, the company reported sales of $1bn in 2019.
Fitesa offers advanced solutions for the hygiene and healthcare markets. It uses a range of nonwoven technologies, including spunbond, carded, airlaid and elastic films and laminates.
Based in Porto Alegre of Brazil, Fitesa employs more than 2,000 people in 16 manufacturing locations across 10 countries such as Brazil, Peru, Mexico, Italy, Sweden, Germany, the US, UAE, Thailand and China.
In May this year, Dow 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.