RICHMOND, Va., Oct 17, 2011 (BUSINESS WIRE) --
Tredegar Corporation (NYSE:TG) announced today that its subsidiary,
Tredegar Film Products Corporation, has agreed to acquire 100% of the
equity interests of Terphane Holdings LLC ("Terphane"), a leading
manufacturer of specialty polyester films with operations in Brazil and
the United States. Terphane is currently owned by Vision Capital, an
international investment firm.
The approximate purchase price of $188 million will be funded using
available cash on hand and financing from Tredegar's existing $300
million credit facility. Tredegar expects that the acquisition will be
accretive within the first year following the acquisition. Closing of
the acquisition, which is subject to the satisfaction or waiver of
certain customary closing conditions, is expected later this month.
With revenues of approximately $160 million for the last twelve months,
as of June 30, 2011, Terphane is a market leading producer of thin
polyester films in Latin America with a growing presence in strategic
niches in the United States. Polyester films have specialized
properties, such as heat resistance and barrier protection, which make
them uniquely suited for the fast-growing flexible packaging market.
Terphane is headquartered in São Paulo, Brazil and operates two
manufacturing facilities in Cabo, Pernambuco Brazil and Bloomfield, New
York. It enjoys long-standing relationships with prominent Latin
American and multinational customers.
Commenting on the acquisition, Nancy Taylor, Tredegar's President and
CEO, said, "We have been working for some time to find an acquisition
that meets our stated goals for market expansion and customer and
product diversification. Terphane's high-value, differentiated products
will extend our product offerings into adjacent specialty films markets
and allow us to expand in Latin America, which is one of the fastest
growing and dynamic geographic markets in the world."
Tredegar was advised by Deloitte Corporate Finance LLC.
Tredegar's management will host a conference call after closing to
discuss the acquisition. Details of the call will be announced upon
About Tredegar Corporation:
Tredegar Corporation is primarily a manufacturer of plastic films and
aluminum extrusions. A global company headquartered in Richmond,
Virginia, Tredegar had sales of $740 million in 2010. 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.
About Vision Capital:
Vision Capital is an innovative private equity investor focused on
delivering comprehensive strategic transactions for sellers. Vision
Capital has operations in Europe and the Americas and a multi-sector
approach with specialist expertise in Financials and Real Estate,
Industrials and Manufacturing, and Business Services and Consumer.
Additional information regarding Vision Capital is available at www.visioncapital.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
complete the acquisition as expected and within the expected timeframe;
the possibility that one or more of the conditions to the completion of
the acquisition may not be satisfied; any event that could give rise to
a termination of the purchase agreement; the ability to integrate
Terphane'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
2010 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
Neill Bellamy, 804-330-1211