The nonwovens leader continues to grow and expand its innovative product portfolio
August 25, 2020 (Porto Alegre, Brazil)
Fitesa announced today that it has entered into a sale & purchase agreement to acquire Tredegar Corporation’s Personal Care Films business. The Personal Care Film business has
approximately 400 employees worldwide and includes manufacturing sites located in Terre Haute, United States; Kerkrade, The Netherlands; Rétság, Hungary; Diadema, Brazil; and Pune, India.
The acquisition strengthens Fitesa’s films, elastics and laminates business. “We are happy to announce this investment which reinforces our commitment to innovation and growth. We are continuously looking for opportunities to improve the value we create for our customers, employees, communities and shareholders. Fitesa is a strategic player that focuses on investments with a view to hold them for the long term. We believe this new acquisition, which was accomplished amidst a global crisis, is yet another demonstration of that”, says Silverio Baranzano, Fitesa’s CEO. ——————————->
Tredegar Corporation, in a press release has said that the proposed transaction excludes the packaging film lines and operations relating to the Pottsville, Pennsylvania manufacturing site currently reported by Tredegar within the personal care component of its PE Films segment (“Pottsville Packaging”).
Cash proceeds from the sale net of transaction costs, purchase price adjustments and transition services are estimated at $40 to $45 million. Net cash income tax costs or benefits relating to the transaction are expected to be negligible.
Closing of the transaction, which is contingent upon the satisfaction of customary conditions, including competition filings in various countries where Tredegar and Fitesa do business, is expected to occur during the fourth quarter of 2020. The Personal Care Films business, with a carrying value of net assets of approximately $70 million, is expected to be reported as a discontinued operation beginning in the third quarter of 2020 and a non-cash accounting loss is expected to be recognized at that time. Tredegar’s surface protection component of its PE Films segment, with manufacturing at the Pottsville facility as well as in Guangzhou, China, will add Pottsville Packaging to its responsibilities.
For the 12 months ended June 30, 2020, net sales and EBITDA from ongoing operations for the Personal Care Films business to be sold were $133 million and negative $1.7 million, respectively.
Closing of the transaction, which is contingent upon the satisfaction of customary conditions, is expected to occur during the fourth quarter of 2020.
About Fitesa: Fitesa is one of the largest global nonwoven’s manufacturers. We specialize in the development of innovative 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.
About Tredegar Corporation: Tredegar Corporation is a manufacturer of plastic films and
aluminum extrusions. A global company headquartered in Richmond, Virginia, Tredegar had 2019 sales of $1 billion. With approximately 3,000 employees, the company operates
manufacturing facilities in North America, South America, Europe, and Asia.