Chargeurs — M&A Activity 2016

Jul 18, 2016

CHARGEURS STEPS UP THE PACE OF INTERNATIONAL EXPANSION

PRESS RELEASE

Paris – July 18, 2016

Chargeurs extends the Protective Films Division's global leadership by acquiring US-based Main Tape, Inc.

Michaël Fribourg, Chargeurs' Chairman and Chief Executive Officer, said: "The successful acquisition of Main Tape, Inc. enables our Group to consolidate its leadership of the global temporary surface protection market. This purchase, which consolidates this worldwide niche market, illustrates our capacity to grow our operating segments, with high selectivity, by leveraging our deep industrial, managerial and financial roots."

Chargeurs strengthens its surface protection business base in the United States

Chargeurs has acquired, with immediate effect, the entire capital of Main Tape, Inc. from Nekoosa Holdings, Inc. Based in Cranbury, New Jersey (USA), Main Tape specializes in the design and manufacture of plastic film for temporary surface protection applications. Founded in 1987, Main Tape has successfully developed a comprehensive product and solution offering for industrial customers based primarily in the United States but also in Mexico. In 2015, the company reported revenue of US\$27 million. Nekoosa will retain the Graphics portion of the Main Tape business as part of the transaction.

The acquisition, which took the form of a pre-emptive purchase offer, will consolidate the market presence, product offering and leadership of Chargeurs Protective Films, the world's leading manufacturer of plastic surface protection films on both the North American and International markets. Main Tape, Inc. will be joining a business division that reported revenue of €227.2 million and recurring operating profit of €21.8 million in 2015. It will bring to Chargeurs Protective Films additional marketing and manufacturing capacity along with solid synergy benefits. It will also enable the Group to better take advantage of macroeconomic cycles, with increased capacity in the dollar zone, and offer customers an enhanced quality of service.

A niche acquisition that adds weight to Chargeurs' value creation model

This carefully targeted and high-quality acquisition has been entirely self-financed, demonstrating the Group's ability to step up the pace of business growth in a manner that is entirely in keeping with its disciplined and selective industrial and financial management criteria.

Chargeurs operates in several global industrial niches and earns 93% of its revenue outside France. With this acquisition, it has expanded its international footprint.

The Chargeurs model is built around four pillars:

• High value-added products and services sold in niche markets throughout the world.
• A model based on operational excellence and continuous business process optimization.
• A robust and demanding financial culture guaranteeing a consistent healthy return on capital employed.
• Engaged management of human capital, to obtain the best from the Group's international talent base.

Next announcement: 2016 interim results on Friday, September 9, 2016

CONTACT Financial Communications Tel: +33 (0)1 47 04 13 40 E-mail: comfin@chargeurs.fr Website: www.chargeurs.fr

ABOUT CHARGEURS

Chargeurs is a global manufacturing and services group with leading positions in four segments: temporary surface protection, technical substrates, garment interlinings, and combed wool.

It has over 1,500 employees based in 32 countries on five continents, who serve a diversified customer base spanning more than 45 countries.

In 2015, consolidated revenue totaled almost €500 million, of which nearly 93% was generated outside France.