By Catherine Kavanaugh
STAFF REPORTER
Published: September 20, 2013 3:35 pm ET
Updated: September 20, 2013 3:37 pm ET
Two major shareholders of Richmond, Va.-based Tredegar Corp. have signaled that change could be coming for the global manufacturer of film products used for flexible packaging, personal care and protective covers for electronic screens.
Brothers John and William Gottwald “have concluded” that shareholders would be best served by the board of directors considering “strategic alternatives” for the company, according to a Sept. 6 filing with the U.S. Securities and Exchange Commission.
John Gottwald, the company’s retired CEO, and William Gottwald, vice chairman of the board, report that they “might discuss potential courses of action with their father,” Floyd Gottwald Jr., who also is retired. The trio owns 22.8 percent of Tredegar’s shares, according to the filing.
The brothers did not elaborate on what strategic alternatives they want the board to consider. However, the choice of words often indicates plans to pursue a company sale, merger, unit spinoff or some other major change.
Tredegar was created in 1989 from a spinoff of the plastic, aluminum and energy divisions of Ethyl Corp. Tredegar eventually dropped the energy unit and focused on plastic and aluminum. The company’s film products include non-woven laminates used for baby diapers and personal-hygiene products. The film packaging is used by the food industry and as overwrap for bathroom tissue and paper towels while the aluminum division makes extrusions for the construction, automotive and equipment industries.
Corporate sales are $882.2 million, with the film operation ranked No. 12 last year, according to Plastics News’ survey of North American film and sheet manufacturers. Film sales were $611.9 million in 2012.
The latest investor presentation identifies market drivers as aging baby boomers buying more adult incontinence products, growth in tablet and smartphone sales, and expected demand for flexible packaging, particularly food packaging during the 2014 World Cup and 2016 Olympics in Brazil.
Tredegar has 2,700 employees in 18 locations in North America, Europe, Asia, and South America.
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