Tredegar to Purchase Exxon's Plastic Film Unit

Tredegar Industries (Richmond, VA) said Monday it has signed an agreement with Exxon Chemical Co., a division of Exxon Corp. to acquire Exxon's plastic film business. The proposed acquisition, which is subject to various conditions, is expected to be completed by the end of May. Tredegar said it will disclose financial details related to the purchase at that time.

Based on analysts' estimates that the Exxon Corp. division's plastic film revenues top $100 million a year, the acquisition would increase the size of Tredegar's plastic film operations by roughly one-third. Tredegar's film business now operates six plants and a technical center in the United States, and has plants in the Netherlands, Hungary, Brazil, Argentina and China. The division reported 1998 sales of $287 million and profits of $53.8 million.

"While the acquisition should make a small contribution to 1999 earnings, we expect to begin realizing significant synergies from the combined businesses next year," said John Gottwald, Tredegar's president and CEO.

The pending acquisition includes plants in Lake Zurich, IL, and Pottsville, PA, that manufacture films used primarily in packaging, personal hygiene and medical markets.