Commenting on the sale, John Steitz, Tredegar ’s president/CEO, says, "We believe that in combination with Fitesa, a worldwide leader in nonwoven fabrics, Tredegar’s former personal-care business will have improved opportunities for growth.”
Cash proceeds from the sale net of transaction costs, purchase price adjustments and transition services are estimated at $45 million to $50 million. Net cash income tax costs or benefits relating to the transaction are expected to be negligible. The transaction excludes the packaging film lines and related operations located at the Pottsville, PA, manufacturing site, which will now be reported within the Surface Protection component of PE Films.
Tredegar is an industrial manufacturer with three primary businesses: custom aluminum extrusions for the North American building and construction, automotive and specialty 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 2019 sales from continuing operations of $826 million. With approximately 2,500 employees, the Company operates manufacturing facilities in North America, South America and Asia.