Terphane, a producer of specialised polyester films, has manufacturing facilities in Cabo de Santo Agostinho, Brazil, and Bloomfield, New York and employs about 500 people and exports to 29 different nations
Plastic films and aluminium extrusion maker Tredegar has agreed to divest its flexible packaging films business, Terphane, to affiliates of Oben Group for a net debt-free base consideration of $116m.
Under the share purchase agreement, Oben will buy 100% of the share of Terphane.
With its headquarters in So Paulo, Brazil, Terphane is a producer of specialised polyester films. It solely comprises the flexible packaging segment of Tredegar.
The company has manufacturing facilities in Cabo de Santo Agostinho, Brazil, and Bloomfield, New York, and employs about 500 people and exports to 29 different nations.
Oben Group CEO Gonzalo Belaunde said: “We are excited about signing the agreement to acquire Terphane, a relevant producer of BOPET films in Brazil.
“Completion of this transaction will strengthen Oben’s position as a global player in the highly competitive flexible films industry, by expanding the production capacity of BOPET films and providing a great platform to expand production capacity for other films, especially BOPP, in the US and Brazil.
“We expect our combined operations and expertise, and the synergies created by the transaction, to enhance our service to clients. We look forward to the employees of Terphane joining the Oben team.”
Tredegar anticipates realising after-tax cash proceeds following the completion of the deal of $85m after deducting anticipated withholding taxes from Brazil, escrow payments, US capital gains taxes, and transaction costs.
Due to potential changes in deductions over the possibly protracted interim period leading up to the closing date, actual after-tax revenues could deviate from forecasts, the plastic films and aluminium extrusions maker said.
Tredegar president and CEO John Steitz said: “We believe that the purchase by Oben of Terphane will enhance the scale and growth opportunities in the keenly competitive global flexible packaging market.”
The closing of the deal is subject to all customary requirements, including approval from Brazilian and Colombian competition authorities.
Oben works in the flexible packaging industry with experience in the production of advanced flexible films. The firm has locations in over 17 countries with sales to more than 40 countries including the Americas, Europe and Africa.