São Paulo, September 1st, 2023 – Tredegar Corporation (NYSE:TG) today announced that it has signed an agreement to sell Terphane (www.terphane.com) to Oben Group (www.obengroup.com). Terphane has approximately 500 employees with manufacturing sites located in Cabo de Santo Agostinho, Brazil and Bloomfield, New York, and headquarter located in São Paulo, Brazil, and exports to 29 countries. The transaction net debt-free base consideration is US$116 million and will have its closing contingent upon the satisfaction of customary conditions, including clearance by competition authorities in Brazil and Colombia.
John Steitz, Tredegar’s president and chief executive officer, 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.”
According to Gonzalo Belaunde, Oben’s chief executive officer, “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 production capacity of BOPET films and providing a great platform to expand production capacity for other films, especially BOPP, in the U.S. 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.”
José Bosco Silveira Jr, President of the Terphane Group, adds, ” With the addition of Terphane‘s operations in Brazil and the United States, the Oben Group will have an operational presence in the two largest consumer markets for flexible packaging in the Americas, strengthening its position in a highly competitive global market for plastic films. Terphane‘s high level of specialization, technical expertise, market tradition and capacity for innovation in specialty polyester films, together with Oben‘s broad manufacturing and product portfolio, will enable the future joint business to further expand its value proposition to clients in the packaging market in the Americas and worldwide.
Bosco also notes that Terphane will remain under the umbrella of the Tredegar Corporation and will operate completely independently of Oben Group, pending review and approval by regulatory authorities. “Our focus will continue to be on leveraging the company’s incredible team of professionals to develop and produce solutions that help our direct customers (the packaging converting industry), and brand owners create better, safer, more competitive and sustainable packaging,” he adds.
Tredegar is an industrial manufacturer with three primary businesses: custom aluminum extrusions for the North American building & construction, automotive and specialty end-use markets; surface protection films for high technology applications in the global electronics industry; and specialized polyester films primarily for the Latin American flexible packaging market. Tredegar had 2022 sales of US$ 939 million. With approximately 1,800 employees, Tredegar operates manufacturing facilities in North America, South America, and Asia.
Oben is an important player in the market of inputs for the flexible packaging industry with more than 31 years of experience in the production of state-of-the-art flexible films having strategic locations in more than 17 countries with sales to more than 40 countries in the Americas, Europe and Africa. It has a diversified portfolio that includes BOPP, BOPET, BOPA, BOPE, CPP, Extrusion Coated as well as Thermoformed Products.
Link to Tredegar Press Release: https://ir.tredegar.com/news-releases/news-release-details/tredegar-agrees-sell-terphane-oben-group