Tredegar receives Brazilian CADE approval for sale of Terphane business unit

Tredegar announced that Brazil’s Administrative Council for Economic Defense approved a merger control agreement allowing Tredegar to proceed with the sale of Terphane, its flexible packaging business headquartered in Brazil, to Oben Group. The conditions contained in the merger control agreement, mainly comprised of post-closing commitments for Oben to address certain competition concerns, are expected to be met with closing of the transaction planned for November 1, 2024. On September 1, 2023, Tredegar entered into an agreement to sell Terphane to Oben for net cash-free and debt-free base consideration of $116 million. Tredegar expects to realize after-tax net cash-free and debt-free cash proceeds from completion of the transaction of $85 million, including $78 million at closing and $7 million from the release of certain escrow funds within 120 days of closing. Expected amounts are based on Terphane’s estimated closing balance sheet, which are subject to change based on any revisions to estimates before closing and the actual closing balance sheet compiled during the Post-Closing Review Period.