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Tredegar has announced the sale of its flexible packaging films business Terphane to affiliates of Oben Group for a net debt-free base consideration of $116 million. Terphane, which solely comprises Tredegar’s flexible packaging segment, has around 500 employees with manufacturing sites located in Cabo de Santo Agostinho, Brazil and Bloomfield, New York, US. Terphane’s headquarters is located in São Paulo, Brazil, and the company exports to 29 countries. John Steitz, Tredegar’s president and CEO, said the purchase will enhance the scale and growth opportunities in the competitive global flexible packaging market. Gonzalo Belaunde, Oben’s CEO, said: “We are excited about signing the agreement to acquire Terphane, a relevant producer of BOPET (biaxially oriented polyethylene terephthalate) films in Brazil. Completion of this transaction will strengthen Oben’s position as a global player in the highly competitive flexible films industry, by expanding production capacity of BOPET films and providing a great platform to expand production capacity for other films, especially BOPP, in the US and Brazil. We expect our combined operations and expertise, and the synergies created by the transaction, to enhance our service to clients. We look forward to the employees of Terphane joining the Oben team.” José Bosco Silveira, president of the Terphane Group, added: "With the addition of Terphane's operations in Brazil and the US, the Oben Group will have an operational presence in the two largest consumer markets for flexible packaging in the Americas, strengthening its position in a highly competitive global market for plastic films. Terphane's high level of specialisation, technical expertise, market tradition and capacity for innovation in specialty polyester films, together with Oben's broad manufacturing and product portfolio, will enable the future joint business to further expand its value proposition to clients in the packaging market in the Americas and worldwide.” According to Bosco Silveira, Terphane will remain under the umbrella of the Tredegar Corporation and will operate completely independently of Oben Group, pending review and approval by regulatory authorities. He said that the company’s focus will continue to be on leveraging the company's team of professionals to develop and produce solutions that help its direct customers and brand owners create better, safer, more competitive and sustainable packaging. The transaction will have its closing contingent upon the satisfaction of customary conditions, including clearance by competition authorities in Brazil and Colombia.