RICHMOND - Tredegar Corporation has completed the sale of its personal care films business to affiliates of Fitesa S.A.
Commenting on the sale, John Steitz, Tredegar’s president and chief executive officer said: “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 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, Pennsylvania manufacturing site, which will now be reported within the Surface Protection component of PE Films.
The Personal Care Films business will be reported in the company’s third quarter financial results as a discontinued operation.
Fitesa is major global nonwoven’s manufacturer specializing in the development of solutions for the hygiene and healthcare markets using a broad range of technologies, that include spunbond, carded, airlaid, films, elastics and laminates. Headquartered in Porto Alegre, Brazil, Fitesa employs over 2.000 people in 16 manufacturing locations across 10 countries: Brazil, Peru, Mexico, Italy, Sweden, Germany, United States, United Arab Emirates, Thailand and China.
Tredegar Corporation 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.