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ididideaeal totoolols fofoor rerereetatailililererers s tot reducce e ininin-stotorerere ‘shhshsh iriririnknknkagage’e’e’. Whille e RFRFIDIDID iissnonot t a a nenew ww tetet chchc nononoloogygy, , anana d haass bebeenenen uuusesed d inin thehe fashiionoo industry for a a a nunumbmbererer oooff f yeyeyeararars,s mmorooree rererececentntn aadvdvd ananceceemmentntss inin ccchihih p manufaf cturingtetetechchchnononololologygy areree mmmakkkining g RFRFRFIDIDD mmmuucuch h mooorrere pppraractctcticicicalalalal fffforor use in the packaging ofof widddererer range oof f hih ghh ‘‘vavavalulul e pper kg’ consumummer goods suchas meats, , , fififi shshsh aandn alcohholl.

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Packaging - An Industry of Change

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M&A Trends

UK PackagingA period of consolidation MARKET OVERVIEW

Industrial Sector Team Contacts:

Patrick Groarke, Partner - 020 7484 4707

Graham Carberry, Director - 020 7484 4728

Alex John, Director - 020 7484 4712

Barry Sheehan, Associate - 020 7484 4747

Greg Watterson, Analyst - 020 7484 4714

DATE TARGET ACTIVITY ACQUIRER EV EBITDA (X)

Nov-14 Presentation Products Group Supplier of rigid packaging and gifting products Multi Packaging Solutions n.a n.a

Nov-14 Label Connections Pre-die cut pressure sensitive labels CCL Industries Inc n.a n.a

Nov-14 Flexipol Packaging Polyethylene based fl exible packaging manufacturer Plastics Capital plc 10.6 6.9x

Aug-14 Learoyd Packaging Supplier of fl exible packaging solutions Coveris n.a n.a

Sep-14 Network Packaging Packaging materials distributor Macfarlane Group plc 7.5 n.a

Jul-14 Plastique Plastic thermoformed packaging manufacturer Business Growth Fund n.a n.a

Jun-14 St. Neots Packaging Cartonboard solutions for the food-to-go and convenience markets Coveris n.a n.a

Feb-14 Benson Group Cardboard packaging products for food & pharmaceutical apps Graphic Packaging 100.0 6.6x

Dec-13 M&H Plastics Rigid plastic packaging to the personal care, healthcare segments RPC Group plc 103.5 7.4x

Nov-13 Allied Glass Containers Glass bottle manufacturer CBPE Capital 130 6.6x

Nov-13 BCP Fluted Packaging Corrugated packaging supplier Huhtamaki Oy 16.7 8.9x

Sep-13 Systems Labelling Labels supplier to the FMCG sector The Americk Group n.a n.a

Jul-13 Chesapeake Corp Global provider of print-based specialty packaging The Carlyle Group n.a n.a

Mar-13 Contego Healthcare Packaging solutions for the pharmaceutical and healthcare markets Filtrona plc 160.0 8.9x

Jan-13 Paragon Print & Packaging Self adhesive labels, fl exible packaging and cardboard sleeves Coveris 153.7 6.5x

COMPARABLE PACKAGING TRANSACTIONS

source: Mergermarket, Livingstone Analysis

QUOTED PACKAGING COMPANIES MULTIPLE ANALYSIS The population of publicly quoted companies listed in the UK is varied in product type - rigids, fl exibles, paper and foils are all represented - and geographic reach, from Rexam one of the world’s leading beverage can manufacturers through to MacFarlane’s, a UK-centric leader in the distribution of packaging consumable products. Over the past three years, as consumer confi dence has returned and spending has increased, those companies with global reach and signifi cant scale have traded at a premium. For example, three years ago Mondi was trading on a 4x EBITDA multiple, now the fi gure is nearer 8x. However, it is worth highlighting that during 2014 the majority of groups have seen a decline in their multiple as the pace of economic growth in key regions has slowed. Only MacFarlane’s has gained, possibly refl ecting the strength of the UK economy - where the group generates nearly all of its revenues.

source: S&P Capital IQ, Livingstone Analysis

Over the past three years all the share prices of all of these groups have recorded positive gains, ranging from Rexam (+15%) through to Mondi (+130%). However, if we narrow the focus to the past 12 months, the picture is less encouraging. With the exception of RPC (+11%) all the remaining groups’ share prices have drifted, mirroring overall stock market performance. The share prices of RPC, the rigid packaging specialist, has consistently outperformed its peers as the group has supported the implementation of its Vision 2020 strategy with acquisitions, which included M&H Plastics for £103.5m.

source: S&P Capital IQ, Livingstone Analysis

CURRENT & FORECAST YEAR EV/EBITDA MULTIPLE

3x

4x

5x

6x

7x

8x

9x

10x

11x

12x

Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14

API BPI DS Smith MacFarlane Mondi Rexam RPC

RPC

API

DS Smith

Rexam

BPI

McFarlane

Mondi

International Mid-market M&A and Debt Advisory Firm

020 7484 4700

4.4x4.9x

7.4x6.9x

7.8x7.3x

3.6x

4.7x

7.0x

6.1x

7.4x7.8x

6.7x

0x

1x

2x

3x

4x

5x

6x

7x

8x

API BPI DS Smith MacFarlane Mondi Rexam RPC

Current Year Forecast Year

8.2x

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Packaging - An Industry of Change

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M&A Trends

UK PackagingA period of consolidation MARKET OVERVIEW

Industrial Sector Team Contacts:

Patrick Groarke, Partner - 020 7484 4707

Graham Carberry, Director - 020 7484 4728

Alex John, Director - 020 7484 4712

Barry Sheehan, Associate - 020 7484 4747

Greg Watterson, Analyst - 020 7484 4714

DATE TARGET ACTIVITY ACQUIRER EV EBITDA (X)

Nov-14 Presentation Products Group Supplier of rigid packaging and gifting products Multi Packaging Solutions n.a n.a

Nov-14 Label Connections Pre-die cut pressure sensitive labels CCL Industries Inc n.a n.a

Nov-14 Flexipol Packaging Polyethylene based fl exible packaging manufacturer Plastics Capital plc 10.6 6.9x

Aug-14 Learoyd Packaging Supplier of fl exible packaging solutions Coveris n.a n.a

Sep-14 Network Packaging Packaging materials distributor Macfarlane Group plc 7.5 n.a

Jul-14 Plastique Plastic thermoformed packaging manufacturer Business Growth Fund n.a n.a

Jun-14 St. Neots Packaging Cartonboard solutions for the food-to-go and convenience markets Coveris n.a n.a

Feb-14 Benson Group Cardboard packaging products for food & pharmaceutical apps Graphic Packaging 100.0 6.6x

Dec-13 M&H Plastics Rigid plastic packaging to the personal care, healthcare segments RPC Group plc 103.5 7.4x

Nov-13 Allied Glass Containers Glass bottle manufacturer CBPE Capital 130 6.6x

Nov-13 BCP Fluted Packaging Corrugated packaging supplier Huhtamaki Oy 16.7 8.9x

Sep-13 Systems Labelling Labels supplier to the FMCG sector The Americk Group n.a n.a

Jul-13 Chesapeake Corp Global provider of print-based specialty packaging The Carlyle Group n.a n.a

Mar-13 Contego Healthcare Packaging solutions for the pharmaceutical and healthcare markets Filtrona plc 160.0 8.9x

Jan-13 Paragon Print & Packaging Self adhesive labels, fl exible packaging and cardboard sleeves Coveris 153.7 6.5x

COMPARABLE PACKAGING TRANSACTIONS

source: Mergermarket, Livingstone Analysis

QUOTED PACKAGING COMPANIES MULTIPLE ANALYSIS The population of publicly quoted companies listed in the UK is varied in product type - rigids, fl exibles, paper and foils are all represented - and geographic reach, from Rexam one of the world’s leading beverage can manufacturers through to MacFarlane’s, a UK-centric leader in the distribution of packaging consumable products. Over the past three years, as consumer confi dence has returned and spending has increased, those companies with global reach and signifi cant scale have traded at a premium. For example, three years ago Mondi was trading on a 4x EBITDA multiple, now the fi gure is nearer 8x. However, it is worth highlighting that during 2014 the majority of groups have seen a decline in their multiple as the pace of economic growth in key regions has slowed. Only MacFarlane’s has gained, possibly refl ecting the strength of the UK economy - where the group generates nearly all of its revenues.

source: S&P Capital IQ, Livingstone Analysis

Over the past three years all the share prices of all of these groups have recorded positive gains, ranging from Rexam (+15%) through to Mondi (+130%). However, if we narrow the focus to the past 12 months, the picture is less encouraging. With the exception of RPC (+11%) all the remaining groups’ share prices have drifted, mirroring overall stock market performance. The share prices of RPC, the rigid packaging specialist, has consistently outperformed its peers as the group has supported the implementation of its Vision 2020 strategy with acquisitions, which included M&H Plastics for £103.5m.

source: S&P Capital IQ, Livingstone Analysis

CURRENT & FORECAST YEAR EV/EBITDA MULTIPLE

3x

4x

5x

6x

7x

8x

9x

10x

11x

12x

Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14

API BPI DS Smith MacFarlane Mondi Rexam RPC

RPC

API

DS Smith

Rexam

BPI

McFarlane

Mondi

International Mid-market M&A and Debt Advisory Firm

020 7484 4700

4.4x4.9x

7.4x6.9x

7.8x7.3x

3.6x

4.7x

7.0x

6.1x

7.4x7.8x

6.7x

0x

1x

2x

3x

4x

5x

6x

7x

8x

API BPI DS Smith MacFarlane Mondi Rexam RPC

Current Year Forecast Year

8.2x