RICHMOND, Va.--(BUSINESS WIRE)--Oct. 1, 2012--
Tredegar Corporation (NYSE:TG) announced today that its subsidiary, The
William L. Bonnell Company, Inc. (“Bonnell Aluminum”), has acquired 100%
ownership of AACOA, Inc. (“AACOA”), a leading manufacturer of aluminum
extrusions in North America. The approximate purchase price of $50.8
million was funded using financing under Tredegar’s existing $350
million credit facility. Tredegar expects the acquisition to be
accretive in the first year following the acquisition.
The acquisition will add fabrication capabilities to Bonnell’s current
array of products and services while providing AACOA with large press
capabilities and enhanced geographic sales coverage in a variety of
end-use markets.
AACOA is a premier Midwestern manufacturer of aluminum extrusions with a
full range of value-added capabilities and a reputation for outstanding
product quality and customer service. Originally established as an
anodizing company, AACOA is widely regarded as an industry leader in the
anodizing process with exceptional manufacturing expertise in this area.
Its primary markets include consumer durables, machinery and equipment,
and transportation. The company, with approximately 500 employees, is
headquartered in Elkhart, Indiana and operates production facilities in
Elkhart and Niles, Michigan.
Commenting on the acquisition, Duncan Crowdis, president of Bonnell
Aluminum, said, “We have been actively searching for an acquisition that
meets our stated goals for expanding into markets outside of building
and construction. In AACOA, we found a top-quality manufacturer that
will help us move toward our strategic objectives for both growth and
diversification. By leveraging our combined capabilities in extruding,
anodizing, and fabrication, we will be able to offer high-quality
products and services to a large base of customers and have the
opportunity to profitably grow in attractive industry segments.”
Nancy Taylor, president and CEO of Tredegar Corporation, added, “The
acquisition, our second in a year, demonstrates Tredegar’s commitment to
our strategy of growth and market diversification within the
manufacturing sector. I firmly believe that the combination of Bonnell
Aluminum and AACOA strengthens even further the capabilities of both and
will bring value to our customers.”
Dan Formsma, president of AACOA, stated, “We are thrilled to join forces
with Bonnell Aluminum, a market leader in the aluminum extrusions
industry. Our customers will benefit from Bonnell Aluminum’s broad
footprint and array of products and services. The strong strategic fit
extends to our similar customer-centric cultures and values, and this
move provides an excellent platform for us to grow the business
together.”
Tredegar was advised by Brookwood Associates in Atlanta, Georgia.
About Tredegar Corporation:
Tredegar Corporation is primarily a manufacturer of plastic films and
aluminum extrusions. A global company headquartered in Richmond,
Virginia, Tredegar had 2011 sales of $798 million. With approximately
2,000 employees, the company operates manufacturing facilities in North
America, South America, Europe, and Asia. Additional information
regarding Tredegar Corporation is available at www.tredegar.com.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This news release contains forward-looking statements
regarding Tredegar Corporation’s business. These forward-looking
statements are not historical facts, but statements that involve risks
and uncertainties. Actual results could differ materially from those
included in or implied by these forward-looking statements. Accordingly,
you should not place undue reliance on these forward-looking statements.
Factors that may cause actual results to differ materially from those
contemplated by these forward-looking statements include the ability to
integrate AACOA’s operations as expected and within the expected
timeframe; disruptions to customer and employee relationships and
business operations caused by the transaction; unforeseen liabilities
and claims; 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 2011 Annual Report on Form 10-K filed with the SEC. Readers
are urged to review and consider carefully the disclosures Tredegar
makes in its filings with the SEC. Except as required by applicable law
or regulations, Tredegar does not undertake, and specifically disclaims
any obligation, to update or revise any forward-looking statement.
Source: Tredegar Corporation
Tredegar Corporation
Neill Bellamy, 804-330-1211
Fax:
804-330-1777
nbellamy@tredegar.com
