Tredegar Corporation (NYSE:TG) announced today that its subsidiary, Tredegar Film Products Corporation, has completed the acquisition of Terphane Holdings LLC (“Terphane”), a leading manufacturer of specialty polyester films with operations in Brazil and the United States.
The approximate purchase price of $188 million was funded using available cash on hand and financing secured from Tredegar’s existing $300 million credit facility. The acquisition is expected to be accretive within the first year following the acquisition. 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 product niches in the United States.
Commenting on the acquisition, Nancy Taylor, Tredegar’s President and CEO, said, “Welcoming Terphane to the Tredegar family provides us with significant opportunities to broaden our product portfolio and end-use markets and grow in a key global region. Terphane’s high-value, differentiated products will extend our product offerings into the food and consumer packaging markets. Its strengths in films manufacturing, technology and product commercialization align well with those of Tredegar Film Products. Much like Tredegar Film Products, Terphane enjoys deep, long-term relationships with global customers in Latin America, which is one of the fastest-growing geographic markets in the world.”
Terphane will be operated within Tredegar Film Products, and the current management team at Terphane will continue to run its operations. Monica Moretti, President of Tredegar Film Products, commented, “We are thrilled to join forces with Terphane, an established, successful, and growing company in Brazil, which gives us a much larger presence in Latin America. Bringing together Tredegar Film Products and Terphane will allow us to leverage each company’s strengths and share best practices. We expect Terphane to benefit from the long-term perspective that Tredegar offers as we execute on its growth strategy.”
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