In September 2023, the Company entered into an agreement to sell Terphane, headquartered in Brazil, to Oben for net cash-free and debt-free base consideration of $116 million.

On November 1, 2024, Tredegar completed the sale of Terphane to Oben. At closing, Tredegar received $60 million in cash, which was net of Terphane debt assumed by Oben of $20 million and estimated Terphane cash retained by Oben of $2 million. The cash proceeds received by Tredegar at closing were after deducting net working capital adjustments and closing indebtedness ($20.5 million), escrow funds ($19.8 million), projected Brazil withholding taxes ($10.8 million), and transaction expenses ($4.4 million). In February 2025 and February 2026, the Company received $9.8 million and $0.6 million, respectively, from post-closing settlement of the transaction. The proceeds from the sale of Terphane were required to be used to pay down debt outstanding under the Company’s $125 million senior secured asset-based revolving credit facility (the "ABL Facility").

Upon completion of the sale, the Company recognized a pre-tax loss of $74.9 million for the year ended December 31, 2024, which included the realization of other comprehensive losses on foreign currency translation adjustments, net of gains on derivative financial instruments of $102.3 million previously reflected in accumulated other comprehensive income (loss).

The following table summarizes the financial results of discontinued operations reflected in the Condensed Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Costs and expenses
Selling, general and administrative	$	38	$	97	$	35	$	325
Gain on the sale of divested business	—		—		(565)		(9,657)
Total	38		97		(530)		(9,332)
Income (loss) from discontinued operations before income tax	(38)		(97)		530		9,332
Income tax expense (benefit)1	(8)		—		(31)		—
Income (loss) from discontinued operations, net of tax	$	(30)	$	(97)	$	561	$	9,332
1. An inconsequential income tax expense (benefit) was recognized during the three and six months ended June 30, 2025, primarily due to foreign tax credits generated from the final Brazilian withholding tax payment made during the periods, which offset the tax liability on the income from discontinued operations.


	Six Months Ended June 30,
(In thousands)	2026		2025
Operating activities:
Gain on the sale of divested business	$	(565)	$	(9,657)
Total	$	(565)	$	(9,657)
Investing activities:
Proceeds from the sale of Terphane	$	565	$	9,835
Total	$	565	$	9,835