Tredegar To Sell Ownership Interest In kaleo

Tredegar To Sell Ownership Interest In kaleo
  • Tredegar Corp TG agreed to sell its ~18% ownership interest in kaleo, Inc., pursuant to Marathon Asset Management's acquisition of kaleo, a privately held pharmaceutical company in Richmond, Virginia.
  • Tredegar owns ~3.38 million shares of kaleo, and selling them is projected to result in cash proceeds of $45.8 million.
  • Tredegar has the potential to receive additional cash consideration within six months of the closing of up to $1.4 million in certain post-closing adjustments. Tredegar also has the opportunity to receive cash consideration of up to $5.5 million in 2023 and $8.3 million in 2024, contingent upon kaleo achieving specific net revenue targets.
  • The transaction is anticipated to close by December 31, 2021.
  • The estimated fair value of Tredegar's investment in kaleo as of September 30, 2021, was $35.5 million.
  • Price Action: TG shares are trading higher by 2.61% at $11.38 on the last check Monday.
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