Third quarter 2019

Packaging RecapUncertain times

Contents02 Quarterly Dashboard

03 Ernst & Young Orenda’s Global Packaging Index

04 Packaging M&A Activity

05 Credit Market Conditions

06 Raw Materials Trends

07 Transactions in brief

10 Sustainable Packaging Trends

Packaging Recap Third quarter 2019 | 1

Uncertain timesGloballySlowing US activity, mirroring the rest of the world, resulted in an overall reduction in the global M&A market. During Q3 2019, transaction value totalled $622.2B, a 21.2% decrease from Q3 2018 ($789.7B). The decrease was caused by uncertainty across the globe due notably to the risk of a no-deal Brexit, the trade and tech wars between the US and China and the domestic political situation in the US. Moreover, slowing global economic growth, with 2019 expected to witness the least growth since the 2008 financial crisis (OECD), also led to increased uncertainty and caution.

US: Slowing downThe US witnessed a decrease in M&A activity with $262.9B in total transactional value across 1,206 deals – a 32% year-over-year decrease ($387.0B across 1,565 deals in Q3 2018). Following on the trend outlined in the H1 2019 report, the US M&A market remains very top heavy, with over 75% of Q3 2019 transaction value being driven by $1B+ transactions.

Europe: Resilience of the PEsContinued political and economic uncertainty has plagued Europe’s M&A market since Q3 2018. Deal value in Europe totaled $573.5B year-to-date – a 29.4% value decrease from $812.3B in the first three quarters of 2018. Given strategic players’ lack of appetite, caused by the ongoing uncertainty, private equity activity accounted for a 22.4% share of total M&A activity, the second highest value on record (Mergermarket).

Packaging deal market: Sustained transactional activityBased on our selected sample of relevant sector transactions, there was a flurry of packaging deal activity with 53 transactions in Q3 2019, compared with 41 in Q3 2018, on a noteworthy increase in M&A activity in the metal substrate with five transactions in Q3 – one more than Q1 and Q2 2019 combined. During Q3 2019, the industry’s average disclosed deal value was $112.8M, a large decrease from Q3 2018 ($643.2M), although this quarter was largely inflated by the acquisition of Bemis by Amcor for a total transaction value of $6.8B, whereas the most recent quarter hasn’t seen any announced or closed transactions above $1B. Aside from the glass and paper substrates, current valuation multiples are slightly above their 10-year average, trading between 7.5× and 8.5×. Based on our sample of

53 transactions selected for the three month period, deals involving a strategic buyer still dominate the market at 83% of volume (58% strategic and 25% PE-backed strategic) which is in line with the previous quarter.

During the third quarter of 2019, US-based Arsenal Capital Partners acquired the healthcare packaging business of Switzerland-based Clariant AG for CHF308.0M ($314.0M). Clariant AG’s healthcare packaging business offers solutions for protecting pharmaceutical products from moisture and oxygen. The company has manufacturing facilities in the US, France, China and India. In 2018, it generated a revenue of CHF135.0M ($137.2M) with 600 employees. The transaction allows Clariant AG to focus on its High-Performance Materials division. The transaction value implies a TEV/Revenue multiple of ~2.3× and a TEV/EBITDA multiple of 13.2×. Moreover, Germany-Based Tri-Wall Germany GmbH, a subsidiary of Japan-based Rengo Co., Ltd. (“Rengo”) acquired Germany-based TRICOR Packaging & Logistics AG (“TRICOR”), for €268.0M ($300.2M). TRICOR provides customized industrial and heavy-duty corrugated-board packaging solutions. In 2018, TRICOR reported revenues of €172.5M ($214.9M). The acquisition will allow Rengo to expand its overseas packaging business in the EU region. The transaction value implies a TEV/Revenue multiple of ~1.5×. Counting this transaction, Rengo completed four transactions during Q3, with all the acquired assets operating in the paper substrate. Also, Thailand-based SCGP Rigid Plastics Company Limited (“SCGP”) acquired an 80% stake in Thailand-based Visy Packaging (Thailand) Ltd (“Visy Packaging”) for THB4.3B ($141.9M). Visy Packaging manufactures plastic packaging products. During the last twelve months ending June 2019, the company reported revenues of THB1.8B ($58.1M) with ~100 employees, which implies a transaction TEV/Revenue multiple of ~3.1×. This acquisition is expected to strengthen SCGP’s production capabilities.

Looking forward to Q4The US domestic political situation, the trade war with China, and the never-ending Brexit talks are having a notable impact of greater market uncertainty. And more talk of a looming slowdown and a potential recession dampened confidence in the current cycle. However, the decrease in interest rates and high levels of dry powder should suffice to support the market over the coming months, especially with another US federal rate decrease expected before the end of 2019.

Ken BrooksSenior Vice President, Plastics & Packaging Global Leader

2 | Packaging Recap Third quarter 2019

Quarterly DashboardQuarterly Dashboard and Key Q3 2019 Takeaways

• The EY Global Packaging Index decreased by 2.3% from Q2 2019, trending below the SPX for the first time in 5 years.

• Aside from the paper and glass substrates, current valuation multiples are slightly above their 10-year average, trading between 7.5x and 8.5x. The plastic substrate multiples, both rigid and flexible, have lowered from their small spike earlier in 2019.

• The resurgence of strategic buyers witnessed in H1 2019 continued, accounting for 58% of the deals.

• In Q3 2019, global leveraged loan volume increased by 6.3% on a year-over-year basis while middle market leveraged loan multiples decreased by 0.3x from the 2018 level.

• Raw material prices have been fairly stable for the past two years with polymer price levels below the 10 year average.

• 53 transactions in the sector are highlighted in this market update with only two transactions greater than $250M, and no transaction above the $1Bn threshold in terms of transaction value. In addition, there was a relative surge in the metal substrate, with 10% of total transactions.

Substrate Geography (Target)

Buyer Type

25%

9%

41%

4%

21%

26%Paper

26%Flexible

34%Rigid

10%Metal

4%Glass

Size (in USD)

* 79% of deal values were not disclosed

< 50M 50M-250M 250M-1B > 1B

9% 8%

4% 0% 58%Strategic

25%PE-backed Strategic

17%Private Equity

Packaging Recap Third quarter 2019 | 3

Ernst & Young Orenda’s Global Packaging IndexComments about the Quarter

The Ernst & Young Orenda Corporate Finance global packaging index tracks the performance of the most widely traded global packaging companies relative to the benchmark S&P 500 composite index.Our global packaging index consists of the following publicly traded packaging companies:Amcor LimitedAptarGroup, Inc.Ardagh Group S.A.Avery Dennison CorporationBall CorporationBemis Company, Inc.Berry Global Group, Inc.BG Container Glass Public Company LimitedBillerudKorsnäs AB (publ)Cascades Inc.CCL Industries Inc.Chuo Kagaku Co., Ltd.CPMC Holdings LimitedCrown Holdings, Inc.DS Smith PlcDuni AB (publ)Essel Propack LimitedFP CorporationFuji Seal International, Inc.Gerresheimer AGGraphic Packaging Holding CompanyGreif, Inc.Groupe Guillin S.A.Hokkan Holdings LimitedHuhtamäki OyjInternational Paper CompanyIPL Plastics Inc.Lee and Man Paper Manufacturing LimitedMayr-Melnhof Karton AGMetsä Board OyjMondi LimitedMpact LimitedMulti-Color CorporationMyers Industries, Inc.MYS Group Co., Ltd.Nampak LimitedNine Dragons Paper (Holdings) LimitedORG Technology Co., Ltd.Orora LimitedOwens-Illinois, Inc.Packaging Corporation of AmericaPact Group Holdings Ltd.Rengo Co., Ltd.Reno De Medici S.p.A.RPC Group PlcSealed Air CorporationShanghai Baosteel Packaging Co., Ltd.Shantou Dongfeng Printing Co., Ltd.Shengxing Group Co., Ltd.Shenzhen Jinjia Group Co., Ltd.Silgan Holdings Inc.Smurfit Kappa Group plcSonoco Products CompanyTaiwan Hon Chuan Enterprise Co., Ltd.Takween Advanced IndustriesThe Pack CorporationToyo Seikan Group Holdings, Ltd.Uflex LimitedVetropack Holding AGVidrala, S.A.WestRock CompanyWinpak Ltd.Xiamen Hexing Packaging Printing Co., Ltd.

2-year GPI

5-year GPI

10-year GPI

Note: The indices in this newsletter have been compiled by Ernst & Young Orenda Corporate Finance Inc. solely for illustrative purposes. The companies chosen are publicly traded companies that are commonly used for industry composites to show stock performances within a sector. The indices do not include all public companies that could be categorized within each sector and were not created as benchmarks, nor should they imply benchmarking or recommendations for a particular stock or sector.

Charts: Ernst & Young Orenda Corporate Finance Inc. Data sources: Bloomberg, Capital IQ

Two-year SPX Two-year GPI

Jun2018

Jul2018

Aug2018

Sep2018

Oct2018

Nov2018

Dec2018

Sep2017

Oct2017

Nov2017

Dec2017

Jan2018

Feb2018

Mar2018

Apr2018

May2018

Jun2019

Jul2019

Aug2019

Sep2019

Jan2019

Feb2019

Mar2019

Apr2019

May2019

110

100

90

80

120

130

140

Five-year SPX Five-year GPI

Sep2014

Dec2014

Mar2015

Jun2015

Sep2015

Dec2015

Mar2016

Jun2016

Sep2016

Mar2019

Jun2019

Sep2019

Dec2016

Mar2017

Jun2017

Sep2017

Dec2017

Mar2018

Jun2018

Sep2018

Dec2018

200

180

160

140

120

100

80

60

40

Ten-year SPX Ten-year GPI

Sep2009

Sep2010

Sep2011

Sep2012

Sep2013

Sep2014

Sep2015

Sep2016

Sep2017

Sep2018

Sep2019

100

150

200

250

300

350

400

50

4 | Packaging Recap Third quarter 2019

Packaging M&A Activity

10-year Valuation Trends

Reported Packaging Transactions by Type of Purchaser1

EY Global Packaging EBITDA Margin Trends by Format Type

EY Global Packaging Index EV/EBITDA by Format Type

Valuation multiples generally above 10 years average

Financial Sponsored* Strategic Financial Sponsored %

600

500

400

300

200

100

0

25%

20%

15%

10%

5%

0%2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Num

ber

of c

lose

d de

als

*Excludes PE backed strategics

20.7%

18.3%

18.2%

15.2%14.7%

13.9%14.5%

13.7% 14.2%14.3%

18.6%19.4%

17.2%15.1%

17.8%

16.7%

Flexible Rigid Metal Glass Paper

Sep2009

Sep2010

Sep2011

Sep2012

Sep2013

Sep2014

Sep2015

Sep2016

Sep2017

Sep2018

Sep2019

15.0x

14.0x

13.0x

12.0x

11.0x

10.0x

9.0x

8.0x

7.0x

Flexible Rigid Metal Glass Paper

Sep2009

Sep2010

Sep2011

Sep2012

Sep2013

Sep2014

Sep2015

Sep2016

Sep2017

Sep2018

Sep2019

12.0x

11.0x

10.0x

9.0x

8.0x

7.0x

6.0x

5.0x

4.0x

Valuation multiples generally above 10 years average

Aggressive acquisition market maintained since 2017

Packaging Recap Third quarter 2019 | 5

Credit Market ConditionsInterest Rates on 10-Year Government Debt Securities

Global Leveraged Loan Volume (USD)

Average Total Debt/EBITDA Multiples of Middle-Market LBO Loans

US Treasury UK Government Debt AUS Government Debt EU Central Bank Bond CAN Government Debt

Sep2009

Sep2010

Sep2011

Sep2012

Sep2013

Sep2014

Sep2015

Sep2016

Sep2017

Sep2018

Sep2019

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%

Other Leveraged Loan Volume M&A Loan Volume Average

$750B

$500B

$250B

$0B2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Source: Standard & Poor’s LCD. Historical data from source may vary from previous Market Update editions due to periodical database updates and/or different calculation methodologies from different presentations.

M&A Loan Volume

$265$295

$480

$157

$77

$236

$377

$466

$607

$528

$421

$481

$645$619

$371

6.0x

5.0x

4.0x

3.0x

2.0x2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019

Source: Standard & Poor’s LCD. Historical data from source may vary from previous Market Update editions due to periodical database updates and/or different calculation methodologies from different presentations.

Aggressive acquisition market maintained since 2017

4.3x

5.0x4.7x

5.8x

4.5x

3.2x

4.3x 4.3x4.5x 4.6x

5.3x 5.3x5.1x

5.5x5.6x

5.3x

6 | Packaging Recap Third quarter 2019

Fairly stable raw material prices, with polymer prices below their 10 year average

Raw Materials Trends

Primary IndicatorsPaper Packaging

Plastic Packaging

Secondary Indicators

Paper Paperboard exclusing corrugated Corrugated paperboard Recycled paperboard 10-year average

Aug2009

Feb2010

Aug2010

Feb2011

Aug2011

Feb2012

Aug2012

Feb2013

Aug2013

Feb2014

Aug2014

Feb2015

Aug2015

Feb2016

Aug2016

Feb2017

Aug2017

Feb2018

Aug2018

Feb2019

Aug2019

180

160

140

120

100

80

10-year average: 109.6

All plastic Commodity thermoplastics Recycled plastics Engineering TPS 10-year average

Sep2009

Mar2010

Sep2010

Mar2011

Sep2011

Mar2012

Sep2012

Mar2013

Sep2013

Mar2014

Sep2014

Mar2015

Sep2015

Mar2016

Sep2016

Mar2017

Sep2017

Mar2018

Sep2018

Mar2019

Sep2019

180

160

140

120

100

80

10-year average: 129.5

Crude Oil Natural Gas

Sep2009

Mar2010

Sep2010

Mar2011

Sep2011

Mar2012

Sep2012

Mar2013

Sep2013

Sep2018

Mar2019

Sep2019

Mar2014

Sep2014

Mar2015

Sep2016

Mar2017

Sep2016

Mar2017

Sep2017

Mar2018

120

100

80

60

40

20

0

$/barrel

Crud

e O

il Pr

ice

Nat

ural

Gas

Pric

e

7

6

5

4

3

2

1

0

$/MBTU

Transactions in briefOverview of the year

Flexible • Italy-based SIT S.p.A. (BIT:SIT) (“SIT”) acquired a 70% stake in Italy-based ACM Srl (“ACM”). ACM produces films for flexible packaging applications in the food, cosmetic and pharmaceutical industries. The transaction will allow SIT to expand and improve the production capacity of its current plants. Terms of the transaction were not disclosed.

• Finland-based Huhtamäki Oyj (HLSE:HUH1V) (“Huhtamaki”) has agreed to acquire India-based Mohan Mutha Polytech Private Limited (“MMPPL”) for €10.0M ($10.9M). MMPPL manufactures and supplies high quality laminates either in roll form or as pouches. In 2018, the company reported revenues of €9.0M ($10.3M) with 160 employees. The acquisition will allow Huhtamaki to expand its footprint in India. The transaction value implies a TEV/Revenue multiple of 1.1×.

• Germany-based Paragon Partners GmbH acquired Germany-based DUO PLAST AG in a management buyout transaction. DUO PLAST AG manufactures stretch films used for load securing in the freight, agriculture and food packaging industries. The company serves over 1,600 customers in Germany, Austria, France and the Benelux. In 2018, it generated revenues of €60.0M ($68.8M) with 150 employees. The deal will allow DUO PLAST AG to expand its current offerings and strengthen its market position. Terms of the transaction were not disclosed.

• Finland-based Huhtamäki Oyj (HLSE:HUH1V) (“Huhtamaki”) has agreed to acquire a 70% stake in South Africa-based Everest Flexibles (Pty) Limited (“Everest”) for €58.0M ($63.5M). Everest provides flexible packaging solutions. In 2018, the company reported revenue of €40.0M ($45.9M) with 420 employees. The acquisition will allow Huhtamaki to expand its footprint in South Africa. The transaction value implies a TEV/Revenue multiple of 1.5×.

• Netherlands-based Scholle Ipn Europe Holding B.V. acquired a 51% stake in Germany-based Frischmann Kunststoffe Gmbh (“Frischmann”) to form a joint venture. Frischmann manufactures plastic packaging products ranging from packaging bags and shrink films to the highest-value special applications in the medical and food industries. Terms of the transaction were not disclosed.

• Brazil-based Tekni-Plex Brasil Participações LTDA (“Tekni-Plex”) acquired Brazil-based Geraldiscos Comercio, Industria E Representacoes De Cortica Ltda. (“Geraldiscos”). Geraldiscos manufactures closure liners and induction seals for a variety of container types including PP, PE, HDPE, PVC, PET and glass. The company has 130 employees and provides solutions for the food, beverage, personal care, healthcare, agriculture and chemical industries. The acquisition will allow Tekni-Plex to expand its footprint in South America. Terms of the transaction were not disclosed.

• Taiwan-based Great Plan International Limited acquired Cayman Islands-based Green Seal Holding Limited (TSEC:1262) (“Green Seal”) for TWD6.5B ($210.3M). Green Seal produces biaxially stretched nylon film (BOPA film). The acquisition will provide greater operational flexibility and business development opportunities for Green Seal. The transaction value implies a TEV/Revenue multiple of 1.8× and a TEV/EBITDA multiple of 42.3×.

• Canada-based Transcontinental Inc. (TSX:TCL.A) acquired a 60% stake in Ecuador-based Industrial y Comercial Trilex C.A. (“Trilex”). Trilex manufactures and supplies packaging materials and banana farm plastics for protection and pest control. The acquisition will enable Transcontinental Inc. to strengthen and expand its presence in Latin America. Terms of the transaction were not disclosed.

• Spain-based Biolid acquired Spain-based Industrias Gráficas Marcal S.A. (“Industrias Gráficas”). Industrias Gráficas offers commercial printing and labelling services. Terms of the transaction were not disclosed.

• Canada-based Licaplast Industries-Emballages Inc. (“Licaplast”) acquired Canada-based M’Plast Inc (“M’Plast”). M´Plast Inc offers polyethylene duty bags, shopping bags, animal bedding products, and packaging products for the food packaging, horticulture, agriculture and industrial markets. The acquisition will enhance Licaplast’s capabilities to better serve its customers in North America. Terms of the transaction were not disclosed.

• Germany-based REMONDIS Recycling GmbH & Co. KG acquired Germany-based Pakufol Folienprodukte GmbH (“Pakufol”). Pakufol manufactures plastic bags from recycled plastics and has more than 30 years of industry experience. Terms of the transaction were not disclosed.

• US-based Akoya Capital, LLC and Tecum Capital Management, Inc. acquired US-based Primetac Corporation. Primetac Corporation manufactures and markets pressure sensitive tapes and stretch films. The acquisition will accelerate growth and add new capabilities to existing product offerings. Terms of the transaction were not disclosed.

• US-based Arsenal Capital Partners, L.P. acquired US-based Revolution. Revolution manufactures sustainable, closed-loop plastic products for the agricultural, consumer, and industrial markets. The acquisition will enable Revolution to expand its recycling and manufacturing capabilities. Terms of the transaction were not disclosed.

• Canada-based Labelink Products, Inc. acquired Canada-based The Labelix Group, Inc. (“Labelix”). Labelix manufactures pressure-sensitive labels and operates with over 80 employees. Terms of the transaction were not disclosed.

Glass • South Africa-based Isanti Glass 1 Proprietary Limited has agreed to acquire South Africa-based Nampak Glass (Pty) Ltd. (“Nampak”) for ZAR1.5B ($99.3M). Nampak manufactures and supplies returnable and non-returnable glass bottles for the beer, flavored alcoholic beverage, wine, spirit, non-carbonated soft drink, carbonated soft drink, and food industries. The acquisition will allow Nampak to reduce its interest-bearing debt.

• US-based Berlin Packaging L.L.C. (“Berlin Packaging”) acquired Italy-based Vetroservice s.r.l. (“Vetroservice”). Vetroservice develops and supplies glass packaging products for the food and wine markets. The acquisition will strengthen Berlin Packaging’s businesses and expand its footprint across Italy. Terms of the transaction were not disclosed.

Metal • Argentina-based Queruclor SRL acquired Argentina-based Exal Packaging SA (“Exal”). Exal manufactures impact extruded aluminium containers for the beverage, beauty and personal care, home care, pharmaceutical and food markets. The acquisition will expand Queruclor SRL’s presence in South America. Terms of the transaction were not disclosed.

• UK-based Coppice Alupack Ltd. (“Coppice Alupack”) acquired UK-based Nicholl Food Packaging Limited (“Nicholl Food”). Nicholl Food manufactures and supplies aluminum foil. In 2018, the company reported revenues of £24.2M ($33.9M) with 92 employees. The acquisition will expand Coppice Alupack’s operations in the UK. Terms of the transaction were not disclosed.

Packaging Recap Third quarter 2019 | 7

8 | Packaging Recap Third quarter 2019

• South Korea-based Hanil Can Co., Ltd. (“Hanil Can”) acquired South Korea-based Samkwang Can Co., Ltd. for KRW51.0B ($43.3M). Samkwang Can Co., Ltd. represents the metal packaging segment of Samkwang Co.,Ltd. The acquisition will strengthen Hanil Can’s production capability.

• Argentina-based Envases del Plata S.A. acquired the Argentina-based tinplate steel aerosol packaging facilities of Ball Corporation (NYSE: BLL). Ball Corporation provides sustainable packaging solutions for beverage, personal care and household products. In 2018, the company reported revenues of $11.6B with 17,500 employees worldwide. Post-close, Ball will continue to serve the growing demand for sustainable aluminum aerosol containers and aluminum slugs around the world from its eight facilities located in Canada, the Czech Republic, France, India, Mexico, the United Kingdom and the United States. Terms of the transaction were not disclosed.

• Italy-based Bruni Glass SpA acquired Netherlands-based Vincap & Adolfse. Vincap & Adolfse offers packaging products such as plastic, cork and, and metal closures. The acquisition will improve Bruni Glass SpA’s product depth and expand its geographic coverage. Terms of the transaction were not disclosed.

Paper • Hong Kong-based Nine Dragons Paper (Holdings) Limited (SEHK:2689) (“Nine Dragons”) acquired, in part or in whole, two Hong Kong-based and six China-based paper packaging companies for CNY628.0M ($91.3M). These companies produce paper tubes, paper-based packaging products and corrugated carton boxes. In 2018, all companies reported a combined profit after tax of CNY23.5M ($3.4M). The acquisition will enable the combined entity to strengthen its supply chain of packaging products.

• US-based Ox Industries, Inc. (“Ox”) acquired US-based Custom Paper Tubes, LLC (“CPT”). CPT provides paper tube packaging solutions for the consumer retail, industrial, medical and government markets. The acquisition will allow Ox to expand its protective packaging offerings. Terms of the transaction were not disclosed.

• UK-based Macfarlane Group PLC (LSE:MACF) (“Macfarlane”) acquired UK-based Leyland Packaging Company (Lancs) Limited (“Leyland”) for £3.3M ($3.9M). Leyland manufactures and supplies paper packaging solutions. In 2018, the company reported revenues of £4.1M ($5.2M) with 12 employees. The acquisition will allow Macfarlane to expand its footprint in the northwest of England.

• Malaysia-based individuals Thang Lok and Phang Soon Kong acquired Malaysia-based Mey Paper Industries Sdn Bhd (“MPISB”) for MYR1.3M ($0.3M). MPISB is a manufacturer of corrugated paper carton boxes and other related products.

• UK-based Essentra plc (LSE:ESNT) (“Essentra”) acquired Spain-based NEKICESA Packaging S.L. (“Nekicesa”). Nekicesa is a manufacturer of paper packaging boxes for the pharmaceutical and cosmetics industries. The acquisition will strengthen Essentra’s manufacturing capacity and extend its service capability in existing regions. Terms of the transaction were not disclosed.

• Japan-based Rengo Co., Ltd. (TSE:3941) (“Rengo”) acquired an 80% stake in Japan-based Nishihara Shigyo K.K (“Nishihara”). Nishihara is a manufacturer and seller of cardboard cases. In 2018, the company reported revenues of ¥677.0M ($6.3M) with 28 employees. The acquisition will expand Rengo’s footprint in Japan. Terms of the transaction were not disclosed.

• US-based Pacific Packaging Products, Inc. (“PPP”) acquired US-based Packaging Products Corporation (“PPC”). PPC designs, develops and distributes cold chain packaging products for the medical and perishable food industries. The acquisition will expand PPP’s geographic footprint and scale of business. Terms of the transaction were not disclosed.

• Spain-based Rafael Hinojosa S.A. (“Rafael”) acquired the Spain-based production units of Demco Sa (“Demco”) and Edihor. Demco is a manufacturer of corrugated cardboard and boxes. Edihor distributes packaging products such as extensible film, adhesive tapes, rolls of corrugated board, basic and rough Kraft paper, bubble wrap, corners and strapping. The acquisition will allow Rafael to expand its presence in Catalonia, Spain. Terms of the transaction were not disclosed.

• US-based Graphic Packaging Holding Company (NYSE:GPK) (“Graphic Packaging”) has agreed to acquire US-based Artistic Carton Company (“Artistic Carton”). Artistic Carton manufactures and supplies folding cartons. For LTM June 2019, the company reported revenues of $63.0M. The acquisition will provide end-market diversification, synergies and supply chain efficiencies for Graphic Packaging. Terms of the transaction were not disclosed.

• South Korea-based Sae-A Trading Co., Ltd (“Sae-A”) acquired South Korea-based Tailim Paper Co., Ltd (“Tailim Paper”) and a 71% stake in South Korea-based Tailim Packaging Co., Ltd (“Tailim Packaging”). Tailim Paper and Tailim Packaging provide paper and packaging products. Terms of the transaction were not disclosed.

• Japan-based Rengo Co., Ltd. (TSE:3941) (“Rengo”) acquired Japan-based Takedashiki Co., Ltd. (“Takedashiki”). Takedashiki is a corrugated box manufacturer. Rengo will strengthen collaboration among Takedashiki, its own plants and other group companies, and in the Kanto region it will broaden the Group’s corrugated packaging business. Terms of the transaction were not disclosed.

• Japan-based Rengo Co., Ltd. (TSE:3941) (“Rengo”) acquired a 70% stake in Japan-based Tarutani Industrial Packaging Corporation (“Tarutani”). Tarutani manufactures corrugated boxes and packaging material. In 2018, the company reported revenues of JPY4.1B ($37.1M) with 134 employees. The acquisition will allow Rengo to expand its domestic industrial packaging business. Terms of the transaction were not disclosed.

• Germany-Based Tri-Wall Germany GmbH, a subsidiary of Japan-based Rengo Co., Ltd. (“Rengo”) acquired Germany-based TRICOR Packaging & Logistics AG (“TRICOR”), for €268.0M ($300.6M). TRICOR provides customized industrial & heavy-duty corrugated-board packaging solutions. In 2018, subsidiary Gutmann and TRICOR reported revenues of €5.8M ($7.2M) and €172.5M ($214.9M) respectively. The acquisition will allow Rengo to expand its overseas packaging business in the EU region. The transaction value implies a TEV/Revenue multiple of ~1.5×.

• Poland-based TOP-THIMM Opakowania Sp. z o.o. Sp.k (“TOP-THIMM”) acquired Poland-based United Packaging SA (“United Packaging”). United Packaging manufactures and supplies corrugated cardboard packaging products. The transaction will allow TOP-THIMM to expand its footprint in Poland. Terms of the transaction were not disclosed.

Rigid • Spain-based Grupo Empresarial Zriser SA (“Grupo Zriser”) acquired Spain-based Alcion Plásticos S.L. (“Alcion”). Alcion manufactures and distributes plastic containers for chemical, agrochemical, phytosanitary, cosmetic and food products. The acquisition will diversify Grupo Zriser’s portfolio and expand its international footprint. Terms of the transaction were not disclosed.

• France-based Sidel S.A. acquired France-based Cognac Moules Emballages Plastiques (“COMEP”). COMEP designs and manufactures molds for PET bottles. With more than 20 years of experience in this industry, COMEP produces over 4,000 molds per year for customers around the world. With around 60 employees, the company was a first mover in low blowing pressure technologies. The acquisition will strengthen Sidel S.A.’s molds and tooling portfolio. Terms of the transaction were not disclosed.

Packaging Recap Third quarter 2019 | 9

• US-based Aurora Capital Partners has agreed to acquire US-based Cold Chain Technologies, Inc. (“CCT”). CCT provides reusable and single-use passive thermal packaging solutions for life sciences industry, including pharmaceutical distribution, clinical trials, specialty pharmacy deliveries, and direct-to-patient shipments. Terms of the transaction were not disclosed.

• Spain-based Quadpack Industries, S.A. (ENXTPA:MLQP) (“Quadpack”) acquired the cosmetics packaging division of Germany-based Inotech Kunststofftechnik Gmbh. The acquisition gives Quadpack exclusive distribution rights and access to product development facilities. Terms of the transaction were not disclosed.

• Germany-based Paccor (Zell) Deutschland Gmbh acquired Spain-based EDV Packa ging Solutions S.A. (“EDV”). EDV offers food protection packaging solutions, including barrier sheets and thermoformed containers, to extend product shelf-life. In 2018, EDV reported revenues of £40.0M ($45.8M). The acquisition will allow both groups to lead the innovative change in manufacturing sustainable packaging and become the global leader for rigid barrier applications, with EDV serving as PACCOR’s Center of Excellence for thermoformed products requiring higher oxygen protection. Terms of the transaction were not disclosed.

• US-based Arsenal Capital Partners has agreed to acquire the healthcare packaging business of Switzerland-based Clariant AG for CHF308.0M ($314.0M). Clariant AG’s healthcare packaging business offers solutions to protect pharmaceutical products from moisture and oxygen. The company has manufacturing facilities in the US, France, China and India. In 2018, it generated revenues of CHF135.0M ($137.7M) with 600 employees. The transaction allows Clariant AG to focus on its High-Performance Materials division. The transaction value implies an TEV/Revenue multiple of ~2.3× and an TEV/EBITDA multiple of 13.2×.

• An unknown buyer acquired a stake in Vietnam-based Hoa Phu Joint Stock Company (“Hoa Phu”). Hoa Phu manufactures plastic bottles. Terms of the transaction were not disclosed.

• Japan-based Kyodo Printing Co., Ltd. (TSE:7914) (“Kyodo Printing”) has agreed to acquire the bottle blowing business of Japan-based Kureha Corporation (TSE:4023) for JPY1.7B ($15.7M). Kureha Corporation manufactures specialty chemicals, polymers and agrichemicals. In 2018, the company reported revenues of JPY1.8B ($16.6M) and an operating profit of JPY108.0M ($1.0M). The acquisition allows Kyodo Printing to expand its blow-molded bottle business. The transaction value implies an TEV/Revenue multiple of 0.9× and an TEV/EBIT multiple of 15.7×.

• US-based Tekni-Plex, Inc. (“Tekni-Plex”) acquired Italy-based Lameplast SpA (“Lameplast”) for €88.0M ($99.4M). Lameplast is a leading Italian manufacturer of plastic single/multi-dose containers for pharmaceutical, diagnostic, medical device, veterinary and cosmetic applications, with an emphasis on ophthalmic, vaccine, vaginal and rectal applications. Lameplast is also known for its injection molding, blow molding and injection blow molding expertise which enables it to produce custom packaging solutions for demanding applications. In 2018, the company generated revenues of €25.9M ($29.2M) with 130 employees. Lameplast is the twelfth acquisition Tekni-Plex has made in the past five years, supporting its strategy to grow its business through transformative acquisitions and strategic add-ons. The transaction value implies an TEV/Revenue multiple of 3.4× and an TEV/EBITDA multiple of 11.3×.

• Spain-based Quadpack Industries, S.A. (ENXTPA:MLQP) (“Quadpack”) acquired Germany-based Louvrette GmbH. Louvrette GmbH provides packaging solutions for the beauty industry. The company operates 40 injection-molding lines and offers ~100 products. The acquisition will enable Quadpack to become a hybrid manufacturing and sourcing company. Terms of the transaction were not disclosed.

• Italy-based LUMSON SpA agreed to acquire Italy-based Marino Belotti Srl (“Belotti”). Belotti provides premium makeup packaging solutions. In 2018, the company reported revenues of £15.0M ($17.2M). The acquisition is part of Lumson’s growth strategy to rapidly increase its market share in Italy and abroad, jointly strengthening its leadership and geographical presence. Terms of the transaction were not disclosed.

• US-based Kohlberg & Company, L.L.C. (“Kohlberg”) acquired US-based Nelipak Corporation, Inc. (“Nelipak”). Nelipak offers custom-designed thermoformed packaging for the medical and pharmaceutical industries. In 2018, the company reported an EBITDA of ~$34M with 800 employees. According to Seth H. Hollander, Partner at Kohlberg, “Nelipak has successfully transformed itself into a leading global player in the field of healthcare packaging and an ideal platform for further industry consolidation”. Terms of the transaction were not disclosed.

• Singapore-based Flex Ltd. (NasdaqGS:FLEX) agreed to acquire a closure manufacturing plant from US-based AptarGroup, Inc. (NYSE:ATR) (“AptarGroup”). AptarGroup provides packaging, dispensing, and sealing solutions for the beauty, personal care, home care, prescription drug, consumer health care, injectable, and food and beverage markets. Terms of the transaction were not disclosed.

• Italy-based Bormioli Pharma Bidco S.p.A. (“Bormioli Pharma”) agreed to acquire Germany-based R&G Beteiligungs GmbH (“R&G”). R&G is active in the business of plastic and glass primary packaging which are mainly used in the pharmaceutical industry. In 2018, the company reported revenues of €25.6M ($29.3M) and an EBITDA of €4.1M ($4.7M) with 270 employees. Through this acquisition, Bormioli Pharma reinforces its presence in the German and Northern European markets, expands its current product range with complementary products and strengthens its manufacturing footprint and industrial competences. Terms of the transaction were not disclosed.

• US-based Pretium Packaging, LLC acquired Canada-based Starplex Scientific Inc (“Starplex”). Starplex offers leakproof sample collectors and bottles for the healthcare, environmental/industrial, food and beverage, veterinary, and pharmaceutical/nutraceutical markets. Starplex represents Pretium’s seventh add-on deal since the company was acquired in 2014 by a US mid-market private equity firm. Terms of the transaction were not disclosed.

• US-based PMC Capital Group, LLC acquired Canada-based StyroChem Canada, Ltd. (“StyroChem”). StyroChem produces expandable polystyrene (EPS) products for food service, packaging, construction, casting, and specialty applications. In 2018, the company generated revenues of ~$100.0M. Terms of the transaction were not disclosed.

• US-based Huntington Foam LLC (“Huntington”) acquired US-based Texas Foam, Inc. (“Texas Foam”). Texas Foam manufactures polystyrene products and protective packaging. The acquisition will enable Huntington to strengthen its production capabilities in the temperature-sensitive packaging market. Terms of the transaction were not disclosed.

• Thailand-based SCGP Rigid Plastics Company Limited (“SCGP”) acquired an 80% stake in Thailand-based Visy Packaging (Thailand) Ltd (“Visy Packaging”) for THB4.3B ($141.9M). Visy Packaging manufactures plastic packaging products, offering multi-layer barrier sheets and thermoformed barrier plastic cups. For LTM Jun 2019, the company reported revenues of THB1.8B ($58.1M) with ~100 employees. The acquisition will strengthen SCGP’s production capabilities. The transaction value implies a TEV/Revenue multiple of ~3.1×.

10 | Packaging Recap Third quarter 2019

Sustainable Packaging TrendsMarket Update

Transactions of the Quarter in

Sustainable Packaging

Recent

News

Acquired a controlling stake in

For an undisclosed

amount

Headquartered in Little Rock, Arkansas, Revolution (“the Company”) is driven by a single mission: to create sustainable plastic solutions that help preserve the environment for future generations. Through its innovative closed-loop system, Revolution markets a wide array of plastic solutions for the agricultural sector, which it then recovers, cleans and processes into a post-consumer resin (“PCR”). The Company closes the loop by using this PCR to manufacture the same agricultural products again along with other products such as trash can liners, carryout bags and construction films.

Pakufol, based in Germany, is the leading German manufacturer of plastic bags using both recycled and primary raw materials and has been active in the industry for over 30 years. Pakufol’s recycled content products bear the German “Blue Angel” ecolabel and are made largely from recycled waste film. Remondis, a german provider of recycling services, says the takeover enables the group to close another gap on the path to comprehensive plastic recycling.

Acquired

For an undisclosed

amount

2

transactions in

the sustainable

packaging sector in

Q3 2019

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