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.