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Tredegar Corporation Announces Agreement To Acquire Terphane

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 closing.

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