CHARGEURS BOLSTERS ITS PROTECTIVE FILMS DIVISION'S MOVE UPMARKET

PRESS RELEASE

Paris - April 20, 2017

TWO HIGH-QUALITY NICHE ACQUISITIONS ANNOUNCED IN THE UNITED STATES AND FRANCE

"The two high-quality, carefully targeted acquisitions in the United States and France will enable Chargeurs Protective Films to strengthen its global leadership. By broadening its value proposition to global customers with end-to-end solutions comprising both laminators and films, Chargeurs Protective Films will strengthen its customer footprint and drive growth in film sales. By leveraging the positioning of these two companies, Chargeurs Protective Films will be able to step up its role as game changer in its markets" said Michaël Fribourg, Chargeurs Chairman and Chief Executive Officer.

ACQUISITION OF TWO SMALL INNOVATIVE, HIGH-QUALITY, FAST-GROWING NICHE COMPANIES

Chargeurs announced today that it has agreed to acquire the business assets of US-based Walco Machines Company and a 70% stake in French company, Asidium (Somerra).

Walco Machines Company and Somerra are both innovative market leaders that design and manufacture laminators, which are used to apply temporary surface protection films.

The transactions, focused on two strong brands that are world renowned in a fragmented market and positioned downstream from Chargeurs Protective Films' business, will support the development of synergies in two areas:

  • Offering customers integrated, end-to-end solutions comprising both protective films and the laminators to apply them.

  • Enabling Walco Machines Company and Somerra to draw on the powerful global marketing resources of Chargeurs Protective Films and its Novacel brand, while retaining their entrepreneurial growth culture.

A STRONGER STRATEGY OF VALUE CREATION OVER THE LONG TERM

These targeted acquisitions will enhance Chargeurs Protective Films' ability to serve its customers by offering new integrated solutions as part of a broader and deeper customer relationship while consolidating its position as the global leader in surface protection films.

Illustrating the Group's ability to identify potential new markets, they will also enable Chargeurs to become a world-class player in the specialized laminator market, while offering strong leverage to create value over the long term.

Founded in 1949, US-based Walco Machines Company reported $1.4 million in revenue in 2016. Somerra is a French company created in 1974 and reported almost €1 million in revenue last year.

In 2017, the two companies are expected to deliver a 40% increase on 2016, with an EBITDA margin of more than 10%.

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2017 Financial Calendar

Thursday, September 7, 2017 (before the start of trading) First-half 2017 results

Thursday, November 14, 2017 (after the close of trading) Third-quarter 2017 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 over 1,500 employees based in 34 countries on five continents, who serve a diversified customer base spanning more than 70 countries.

In 2016, revenue totaled more than €500 million, of which more than 90% was generated outside France.

CONTACT

Financial Communications • +33 1 47 04 13 40 • comfin@chargeurs.fr • www.chargeurs.fr

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Chargeurs SA published this content on 20 April 2017 and is solely responsible for the information contained herein.
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