Chargeurs — M&A Activity 2018

Apr 5, 2018

CHARGEURS ANNOUNCES ITS FIRST VERTICAL INTEGRATION FOR CHARGEURS TECHNICAL SUBSTRATES

PRESS RELEASE

Paris – April 5, 2018

Acquisition¹ of UK-based company Leach,

the leading producer of visual communication solutions for retail outlets, museums and institutions

"The acquisition of Leach in the United Kingdom is part of the successful implementation of our Game Changer strategy for operational excellence at Chargeurs Technical Substrates, which has been benefited for a year and a half from the transforming impetus of Patrick Bonnefond. With the acquisition of a major player and market leader that shares a similar long-term, international vision to our own, we are moving up the technical substrates value chain at an ever faster pace. We are delighted to combine our teams to accompany Leach in this change in scale", said Michaël Fribourg, Chairman and Chief Executive Officer of Chargeurs.

"I am excited by this development opportunity for Leach, which will benefit from Chargeurs' international sales platform and prestigious client base. It is a unique opportunity for increased, profitable growth and to become the world leader in this dynamic niche market. The fact that Leach shares the same values as Chargeurs will allow for the seamless integration of our teams, and a higher quality of service for our clients", said Richard Leach, Chief Executive Officer of Leach.

Read about Leach and Chargeurs Technical Substrates:

https://leachimpact.com and https://leachinspire.com/ http://www.senfa.fr

The acquisition of unique expertise in visual communications

Leach's unique expertise extends across a variety of fields, from artistic design to printing and from production to installation. Upright, curved or with motion effects, its custom-built lightboxes are the result of a constant drive to take its capabilities to the next level and are designed to perfectly fit with customer requirements. A reference in its field, the company generates annual turnover of £10 million (€11 million). Leach is renowned for its unrivaled reliability, which has allowed it to develop long-term relationships with prestigious institutions, such as the National Army Museum, the U.S. Embassy in London, the National Charter Monument in Bahrain, and famous clothes retailers like Gap and Topshop.

For 127 years now, four generations of the Leach family have led the business and managed its growth. Originally a photographic studio, the company has always had a key role to play in the significant events in its country's history, printing portraits of the British Royal Family and album covers for Michael Jackson and the Beatles. Customer-oriented and innovation-driven, Leach is recognized as a pioneer in the large format graphic display business. In 2008, the company won the Queen's Award for Innovation, recognizing over a century of pioneering and innovative work. All this, in an advertising market that is ever more demanding.

Chargeurs takes a leap forward in the control of the Technical Substrates' value chain

Chargeurs and Leach share a well-established manufacturing heritage and a common long-term vision for the company's growth. By combining the product quality of Chargeurs Technical Substrates and Leach's expertise in customized services, both companies will gain a new dimension. Chargeurs' global network and financial power will support Leach's technical innovation and commercial development to successfully conquer new markets, acting as a catalyst for its international development.

This acquisition constitutes a decisive step in making Chargeurs Technical Substrates a driving force on the international visual communication market. It fits with the manufacturing and marketing priorities of Chargeurs' Game Changer plan, which is designed to bring together

the leaders from all sides of the value chain. Chargeurs Technical Substrates will continue to accompany its historical customers, growing in versatility and enlarging its customer base to reinforce its leading position in its niche markets.

Focused on innovation and a more aggressive marketing approach, Chargeurs is strengthening its excellence model in the service of its customers as it seeks to become a key player in improving customer experience.

Financial Calendar

Monday, April 16, 2018 (before trading) First-quarter 2018 financial information Monday, April 16, 2018 Thursday, September 6, 2018 (before trading) Wednesday, November 14, 2018 (after trading)

2018 Annual General Meeting 2018 interim results Third-quarter 2018 financial information

ABOUT CHARGEURS

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

It has close to 1,600 employees based in 34 countries on five continents, who serve a diversified customer base spanning more than 80 countries.

In 2017, revenue totaled €533 million, of which more than 90% was generated outside France.

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