PLASTICS & PACKAGING MONITORJANUARY 2014

INSIDE THIS ISSUE

Top News in PLASTICS & PACKAGINGJanuary 30, 2014 — Treofan Group, a Raunheim, Germany-based manufacturer of biaxi-ally-oriented polypropylene films, announced plans to build a production plant in Germany to support its five-layer film operations. The plant, which is expected to open in mid-2015, is expected to produce approximately 1 billion square meters of film per year for premi-um packaging and label applications. The plant will be constructed at Treofan’s current Neunkirchen facility in Germany and is projected to cost nearly $41 million, with produc-tion lines specially designed by Andritz Group. Treofan believes the new plant will drive efficiency via the close proximity of the Company’s production and development operations.

January 24, 2014 — Officials of New York-based hedge fund Third Point LLC, led by ac-tivist investor Daniel Loeb, wrote a letter to investors calling for Dow Chemical Company (NYSE:DOW) to spin off its petrochemicals business along with all of the Company’s plas-tics-related businesses, including its large polyethylene operations. Third Point, which has a sizable, undisclosed minority stake in Dow, cites a poor operational track record across multiple business segments, under-delivering performance relative to expectations, and significantly lower returns than both the S&P 500 Chemicals Index and the S&P 500 Index over the last decade. Third Point’s letter describes a plan to split Dow into two separate firms, Dow Petrochem Co. and Dow Specialty Co. The performance plastics division would be a part of Dow Petrochem Co., according to Third Point.

January 23, 2014 — Plastics News released its January 2014 Resin Report, detailing an unexpected stretch of steady pricing within the North American Polyethylene market in the second half of 2013. Plastics News noted a price hike in September, driven in part by reduced production of HDPE at Formosa Plastic’s plant in Point Comfort, Texas, due to a fire in September. The report noted sustained oil prices continued to provide support for high ethylene prices, which supported the price levels for PE and PVC in the marketplace. Further, the report noted many PE suppliers are taking advantage of relatively low natural gas prices by beginning construction on additional manufacturing capacity, much of which is expected to come online beginning in 2016. When completed, the additional capacity is expected to increase the North American region’s PE capacity by as much as 30%, noted Plastics News.

January 10, 2014 — According to a new report from PCI Films Consulting Ltd., the North American market for flexible packaging is expected to grow to become a $25 billion busi-ness over the next five years. England-based PCI Films notes the current flexible packaging market totaled approximately $20.7 billion in 2013, with sales split between the United States, Canada, and Mexico at 88%, 7%, and 5%, respectively. Driving part of the growth in the flexible packaging market is evolving technologies that create new applications and opportunities for flexible packaging to be considered a viable alternative to rigid packaging with recent sustained growth in food, pharmaceutical, and pet food markets. The $20.7 billion North American market accounts for approximately 30% of global consumption of flexible packaging, according to PCI.

January 6, 2014 — Freedonia Inc., a Cleveland-based research group, released a new study on the global market for plastics processing machinery which projects demand to reach $37.1 billion by 2017. According to the report, the market will grow by approximately 6.9% annually, driven by a better sales climate along with acceleration in fixed investment spending and growing production of plastic goods. Packaging, which will account for nearly a third of 2017 sales, will remain the largest market for plastic processing machinery, while consumer products and construction end markets will continue to drive significant sales. Additionally, Freedonia noted 3D plastics printers will grow fastest among process-ing equipment segments while injection molding machinery will continue to account for the largest overall share of equipment sales, forecasted at approximately 40% of 2017 sales.

Select Transactions in Plastics & Packaging Page 3

Plastics & Packaging Equity Valuation Page 4

Plastics & Packaging Transaction Statistics Page 5

www.pmcf.com

JOHN HARTManaging Director 248.223.3468john.hart@pmcf.com

MATT JAMISONManaging Director 248.223.3368matt.jamison@pmcf.com

RYAN SHUCHMANVice President 248.603.5372ryan.shuchman@pmcf.com

Sources: Plastics News, PCI Films Consulting, Freedonia, European Bioplastics, Company Websites

John HartManaging Director, Plastics & Packaging

Matt JamisonManaging Director

About PMCFP&M Corporate Finance (“PMCF”) is an investment banking firm, focused exclusively on middle market transactions, with professionals in Chicago, Detroit, and across the globe through Corporate Finance International associates. Our dedicated Plastics & Packaging Group has extensive industry knowledge and covers a wide range of processes including thermoforming, extrusion, blow molding, injection molding, resin, and color & compounding. Offering a depth of advisory services, the Plastics and Packaging Group has helped clients worldwide meet their sale, acquisition, financing, and strategic growth objectives.

Investment Banking Services:

• Mergers and Acquisitions • Strategic Assessments• Sales and Divestitures • Sale Planning • Capital Raising

CHICAGO225 W. Washington St., Suite 2700

Chicago, IL 60606312.602.3600

DETROIT26300 Northwestern Highway, Suite 120

Southfield, MI 48076248.223.3300

This market overview is not an offer to sell or a solicitation of an offer to buy any security. It is not intended to be directed to investors as a basis for making an investment decision. This market overview does not rate or recommend securities of individual companies, nor does it contain sufficient information upon which to make an investment decision.

P&M Corporate Finance, LLC will seek to provide investment banking and/or other services to one or more of the companies mentioned in this market overview.

P&M Corporate Finance, LLC, and/or the analysts who prepared this market update, may own securities of one or more of the companies mentioned in this market overview.

The information provided in this market overview was obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not to be construed as legal, accounting, financial, or investment advice. Information, opinions, and estimates reflect P&M Corporate Finance, LLC’s judgment as of the date of publication and are subject to change without notice. P&M Corporate Finance, LLC undertakes no obligation to notify any recipient of this market overview of any such change.

The charts and graphs used in this market overview have been compiled by P&M Corporate Finance, LLC solely for illustrative purposes. All charts are as of the date of issuance of this market overview, unless otherwise noted.

The PMCF Plastics Index may not be inclusive of all companies in the plastics industry and is not a composite index of the Plastic industry sector returns. Index and sector returns are past performance which is not an indicator of future results.

This market overview is not directed to, or intended for distribution to, any person in any jurisdiction where such distribution would be contrary to law or regulation, or which would subject P&M Corporate Finance, LLC to licensing or registra-tion requirements in such jurisdiction.

Plastics & Packaging Monitor – January 2014

P&M Corporate Finance, LLC

3

Select Transactions in Plastics & Packaging

Featured Transaction – Marquee Deal

January 21, 2014 — Toronto-based specialty packaging and label manufacturer CCL Industries (TSX:CCL.B) announced an agree-ment to acquire the combined operations of Sancoa and TubeDec from founder Joe Sanski for approximately $71 million, or 7.0x EBITDA.

Both headquartered in New Jersey, Sancoa and TubeDec offer a combined 220,000 square feet of manufacturing and office space with sales of approximately $82.5 million. Sancoa brings label-making capabilities, while TubeDec has extrusion and side seam tube operations. CCL believes Sancoa and TubeDec are strategi-cally aligned with the Company via its current tube and label product line that serves personal care applications.

CCL has approximately 10,000 employees across 89 production facilities in 25 countries around the world. The Company has experienced significant recent growth via acquisitions, where it believes it can unlock financial and operational synergies.

Featured Transaction – Marquee Deal

January 13, 2014 — Azalea Capital, a Greenville, South Carolina-based private equity group, announced that it has sold its portfo-lio company Star Packaging Corporation to private equity-backed InterFlex Group, Inc. Financial terms of the transaction were not disclosed.

Based in Atlanta, Georgia, Star Packaging provides flexible pack-aging solutions including printing, lamination, and converting. The Company primarily serves the North American bakery, chemicals, and snack food markets. InterFlex views the acquisition as an op-portunity to expand its capabilities and extend its offering to North American customers with a range of flexible packaging solutions and technical resources.

The InterFlex Group, a Wilkesboro, North Carolina-based portfolio company of private equity group Nicolet Capital, manufactures flex-ible packaging products in North America and the United Kingdom. The combined Company will have sales in excess of $200 million.

Film

Date Buyer Target Industry/ Application

Enterprise Value ($mm) EV/EBITDA

Sheet & Thermoforming

Specialty Processes (Rotomolding, Form, Profile Extrusion, & Other)

Injection Molding

Blow Molding

Resin and Color & Compounding

6-Nov-138-Nov-1325-Nov-134-Dec-139-Dec-139-Dec-1321-Dec-1310-Jan-1422-Jan-1422-Jan-14

Rosti A/SLe Papillon Ltd.Ferdinand Piëch Beteiligungs GmbHSaint-Gobain Performance Plastics CorporationFlorida Capital Partners, Inc.; PNC RiverArch CapitalRPC Group PLCWeener Plastik AGMitsui Matsushima Co., Ltd. (TSE:1518)Berry Plastics Group, Inc. (NYSE:BERY)RTI International Metals, Inc. (NYSE:RTI)

Tebplast PlastikAphena Health & BeautyFRANK plastic AGLS Kunststofftechnologie GmbHCustom Molded Products, Inc.Helioplast dooWeener Empire Plastics India Joint VentureNIPPON STRAW Co., Ltd.QINGDAO P&B Co., Ltd.RTI Directed Manufacturing, Inc.

Food & BeverageConsumerMedical

AutomotiveConsumer

Food & BeverageConsumer

Food & BeverageFood & Beverage

Automotive

-----

13.8-

29.4-

23.0

----------

4-Nov-1320-Nov-1311-Dec-1316-Dec-1319-Dec-138-Jan-1423-Jan-14

Environmental Express, Ltd.Impera Capital SAScholle Packaging, Inc.RPC Group plc (LSE:RPC)Scandia Plastics, Inc.Logoplaste Consultores TecnicoCéréa Partenaire; CHEMARK Kft.; BPI France SA

Daniels Scientific Inc.Invento Sp zooIPN Europe BVMaynard & Harris Group LimitedParadigm Packaging, Inc.Seda de Barcelona-PackagingChesapeake's Speciality Chemical Packaging Division

IndustrialFood & BeverageFood & Beverage

MedicalMedical

Food & BeverageIndustrial

---

168.8-

237.6-

---

6.7x---

21-Nov-1329-Nov-139-Dec-1316-Dec-1317-Dec-1320-Dec-1331-Dec-136-Jan-1416-Jan-1428-Jan-1431-Jan-14

Styrolution ABS (India) Limited (BSE:506222)Seiko PMC Corporation (TSE:4963)Citadel Plastics Holdings, Inc.OpenGate Capital, LLCBraskem S.A. (BOVESPA:BRKM5)OpenGate Capital, LLCA. Schulman, Inc. (NasdaqGS:SHLM)Capiton AGSolvay America, Inc.Kraton Performance PolymersTeknor Apex Company

Styrolution India Private LimitedKohjin Film & Chemicals Co., Ltd., Chemicals BusinessLucent Polymers, Inc.Solvay Benvic Europe - Iberica, S.A.Solvay Indupa S.A.I.C. (BASE:INDU)Kem OnePrime Colorants Inc.Dynea Erkner GmbHPlextronics, Inc.LCY Chemical-Styrenic BlockViking Polymers, LLC

IndustrialIndustrialIndustrialIndustrialIndustrialIndustrialIndustrialIndustrialElectronicsIndustrialIndustrial

-13.2

--

235.6-

15.1-

40.2695.9

-

----

4.5x------

5-Nov-1311-Nov-1318-Nov-1318-Nov-1319-Nov-1322-Nov-1323-Dec-1313-Jan-1421-Jan-14

Reynolds Consumer Products Inc.Quad-C Management, Inc.Amcor LtdAmerican Securities LLCChesapeake LimitedThe Jordan Company, L.P.Pall CorpThe InterFlex Group, Inc.CCL Industries Inc. (TSX:CCL.B)

Trans Western Polymers Inc.InterWrap, Inc.Detmold FlexiblesTekni-Plex IncMulti Packaging Solutions, Inc.Transilwrap Company, Inc.Atmi LifeSciencesStar Packaging CorporationSancoa and TubeDec

ConsumerIndustrialConsumer

Food & BeverageConsumerConsumerMedical

Food & BeverageConsumer

69.0-

46.9---

185.0-

71.0

--

6.6x-----

7.0x

6-Nov-1312-Nov-1313-Nov-1321-Nov-1316-Dec-138-Jan-14

Sirap-Gema SpANorthedge Capital PartnersMason WellsKuraray Co. Ltd. (TSE:3405)Universal Plastics CorporationSIMONA AMERICA Inc.

Guillin-Packaging BusinessFine Industries Co., Ltd.Sealed Air Corp-BusinessE. I. du Pont de Nemours, Glass Laminating Solutions/VinylsMayfield Plastics, Inc.Laminations Inc.

Food & BeverageIndustrialMedical

IndustrialMedical

Industrial

-40.6

125.0543.0

--

------

5-Nov-1318-Nov-1322-Nov-1313-Dec-1323-Jan-1424-Jan-14

Lauren Plastics, LLCClearview Capital, LLCIndutrade AB (publ) (OM:INDT)3D Systems Corp. (NYSE:DDD)Grey Mountain Partners, LLCContinental Commercial Products, L.L.C.

Iso-Trude, Inc.Novik Inc. (TSXV:NVK)Verplas LimitedVillage Plastics, Inc.Dimex LLCFTW Holdings, Inc.

ConsumerConstructionConstructionIndustrialConsumerIndustrial

-45.7

---

11.5

-7.9x

----

Source: CapIQ, Company Reports

Plastics & Packaging Monitor – January 2014

www.pmcf.com

4

Plastics & Packaging Equity Valuation

Source: Capital IQ ^Based on available Capital IQ Analyst summaries

Performance of PMCF Indices vs. S&P 500 PMCF Key Takeaways and Analysis

• The Color & Compounding component of the PMCF Index continues to trade at the highest level of the index at 10.3x EBITDA

• Only 2 of 28 companies tracked across PMCF’s four index components are currently trading below their 3-year av-erage EV/EBITDA multiples while all companies tracked by analysts are projected to remain flat or decline slightly from current elevated valuation levels

• The Color & Compounding and Diversified components were the only segments tracked by PMCF that experienced higher growth over the past 3 months vs. the S&P 500, in-creasing by 8.6% and 2.5% respectively, while other com-ponents underperformed the S&P 500, which was up 1.5% during the period

Income Statement data as of last period date reported. Currency conversion rate as of 1/31/2014.

Company Name Symbol LTMRevenue

LTMEBITDA

Market Cap

Price/Earnings Current 3 Year

AverageProjected Next FYE^

Financials / Metrics ($mm) (1/31/2014) EV / EBITDA Multiples

Large Packaging (Large)

Large Average

Mid-Size Packaging (Mid)

Mid-Size Average

Color & Compounders (C&C)

C&C Average

Diversified and Industrial Plastics (Diversified)

Diversified Average

Amcor Ltd.

AptarGroup, Inc. Avery Dennison Corp.Bemis Co. Inc. Berry Plastics GroupRexam plc Sealed Air Corp. Silgan Holdings Inc. Sonoco Products Co.

ASX:AMC NYSE:ATR NYSE:AVY NYSE:BMS NYSE:BERY LSE:REX NYSE:SEE NasdaqGS:SLGN NYSE:SON

$11,703 2,520 6,140 5,030 4,715 6,532 7,691 3,709 4,848

$ 5,876

$1,352 446 663 618 755 914

1,055 508 584

$ 766

$11,278 4,201 4,760 3,964 2,593 6,381 6,119 2,906 4,219

$ 5,158

21.9x25.5x20.2x18.9x37.0x15.4x

NM16.0x20.6x21.9x

11.9x9.9x8.2x8.5x8.5x8.3x9.6x8.8x8.6x9.1x

10.6x8.8x7.5x7.8x8.5x7.3x8.1x8.8x7.5x8.3x

NA9.9x

NANANANA

9.4xNA

8.6x9.3x

AEP Industries Inc.

CCL Industries, Inc.Multi-Color Corp.RPC Group plc Tredegar Corp.Winpak, Ltd.

NasdaqGS:AEPI TSX:CCL.B NasdaqGS:LABL LSE:RPC NYSE:TG TSX:WPK

$1,144 1,779

681 1,768

959 715

$1,174

$ 62 330 111 192 100 134

$ 155

$ 247 2,486

590 1,628

800 1,404

$1,192

22.9x26.7x18.9x37.3x20.0x20.6x24.4x

7.7x10.4x

8.9x9.8x8.4x

10.3x9.2x

8.1x7.0x8.5x7.8x7.0x7.5x7.7x

NA10.3x

NANANA

9.9x10.1x

A. Schulman, Inc.Clariant AGCytec Industries, Inc.Ferro Corp.PolyOne Corp.

NasdaqGS:SHLM SWX:CLN NYSE:CYT NYSE:FOE NYSE:POL

$2,187 6,659 1,935 1,635 3,771

$3,237

$129 885 396 203 391

$ 401

$ 989 5,977 3,191 1,089 3,422

$2,934

29.7x54.3x

NMNM

36.7x40.2x

8.8x8.6x9.6x

16.3x8.4x

10.4x

7.3x6.2x8.4x8.6x8.1x7.7x

NANANA

10.2xNA

10.2x

Axiall CorporationCore Molding Technologies, Inc.Essentra plcIntertape Polymer Group, Inc.Jarden Corp.Myers Industries, Inc.Plastic Omnium SASimona AG

NYSE:AXLL AMEX:CMT LSE:ESNT TSX:ITP NYSE:JAH NYSE:MYE ENXTPA:POM DB:SIM

$4,666 142

1,322 779

7,356 825

6,479 370

$2,742

$671 16

260 96

851 92

623 29

$ 330

$2,788 91

3,175 683

7,775 649

3,799 256

$2,402

16.7x12.4x33.0x34.8x31.1x20.8x16.1x20.8x23.2x

6.9x5.9x

15.2x9.1x

13.2x7.9x6.9x6.5x9.0x

7.8x4.3x

11.2x8.4x9.2x7.5x5.1x5.8x7.4x

6.5xNANA

7.8x10.7x

7.3xNANA

8.1x

Jan-12Jan-11

Apr-11Jul-11

Oct-11

Jan-14Apr-12

Jul-12Oct-1

2Jan-13

Apr-13Jul-13

Oct-13

S&P 500Large Mid C&C Diversified

50%

100%

150%

200%

250%

300%

Plastics & Packaging Monitor – January 2014

www.pmcf.com

5

10

2227

128

13

1923

21

12

8

106

2

2

3

64

5

6

5

10 5

2

3

5

3

76

3

23

42

38

16

13

21

28

3432

21

23

4

6

33

13

4

9

26

Aug 13 Sep 13 Oct 13May 13 Jun 13 Jul 13

2519

3

3

6

5

34

27

Dec 13 Jan 14Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13

1,011Strategic Financial Add-on Financial Platform

0

5

10

15

20

25

30

35

40

45

50

Nov 13

17

6

9

32

Plastics & Packaging Transaction Statistics

Plastics & Packaging Transactions (Nov ‘12 – Jan ‘14) Transactions by End Market

PMCF Key Takeaways & AnalysisTransaction volume for the Plastics and Packaging industry from November 2013 through January 2014 was characterized by the following trends:

• Overall plastics and packaging transaction volume for the three month period was lower by 10 transactions, due pri-marily to unusually high activity levels experienced in De-cember 2012 and January 2013 of 42 and 38 transactions, respectively

• Deals involving plastics and packaging suppliers to the food & beverage end market increased by four deals versus the prior period, surpassing consumer transactions in comprising the second largest share of deal volume, accounting for 19% of all plastics and packaging transactions during the period

• Strategic buyers were more active from November 2013 through January 2014, increasing by 2 deals to 61 transac-tions and 66% of deal volume versus 57% in November 2012 through January 2013. Financial buyers experienced a sig-nificant decline, falling by 12 transactions in the comparison period

• Packaging M&A activity was higher across each packaging category, as overall packaging volume increased by 10 deals versus the comparison period. Packaging deals accounted for approximately 42% of plastics and packaging deals versus only 28% in the comparison period

• Resin and color & compounding transactions posted the larg-est increase in deal activity by processor type, growing by 7 deals versus the comparison period, while blow molding and film deals also increased. Specialty and injection mold-ing M&A experienced the largest decline in activity during the period

• Distressed transactions experienced an increase in deal vol-ume, increasing by 4 deals compared to the previous period, as foreign transactions accounted for 3 of 5 distressed deals

• GF data reported the average valuation of a $10 - $250 mm plastic products transaction in 2013 was 6.3x EBITDA

Source: P&M Corporate Finance

Transactions by Process Type

Packaging Transaction Detail

Distressed Transaction Detail

Nov ‘12 - Jan ‘13 Nov ’13 - Jan ‘14

Packaging DetailNov 12-Jan 13

Nov 13-Jan 14

% of Total

% of Total

Rigid Packaging 15

10

4

29

51.7%

34.5%

13.8%

100%

41.0%

43.6%

15.4%

100%

16

17

6

39

Flexible Packaging

Bottles

Total

% of Total

% of Total

Distressed 1 1.0% 5 5.4%

Nov 12–Jan 13

Nov 13–Jan 14

Blow Molding11%

Injection Molding

22%

Film22%

Specialty14%

Resin/Color & Compounding

22%

Sheet &Thermoforming

9%

Blow Molding9%

Injection Molding

29%

Film16%

Specialty24%

Resin/Color & Compounding

14%

Sheet &Thermoforming

8%

JOHN D. HART Managing Director 248.223.3468 john.hart@pmcf.com

JAMES R. PETERSEN Associate james.petersen@pmcf.com

RYAN R. SHUCHMAN Vice President 248.603.5372 ryan.shuchman@pmcf.com

DANIEL M. RATLIFF Analyst dan.ratliff@pmcf.com

MATTHEW G. JAMISON Managing Director 248.223.3368 matt.jamison@pmcf.com

SCOTT S. ROHLIG Analyst scott.rohlig@pmcf.com

www.pmcf.com

PLASTICS & PACKAGING TRANSACTION UPDATE

PMCF ANNOUNCES RECAPITALIZATION OF PLASTIC MEDICAL MANUFACTURER COMAR

P&M Corporate Finance (PMCF) is pleased to announce that it served as the exclusive financial advisor to Comar, Inc. (Comar), of Buena, NJ in a suc-cessful recapitalization with Graham Partners (Graham) of Newtown Square, PA. The transaction, and Graham’s partnership with Comar’s management, will provide access to additional capital and resources to support Comar’s global expansion plans and further broaden the Company’s product devel-opment and manufacturing capabilities in North America.

Comar’s shareholders selected PMCF’s Plastics & Packaging Group, led by John Hart, to serve as financial advisor for the recapitalization. Comar Presi-dent Mike Ruggieri noted, “PMCF was instrumental to the success of this transaction. They have been a trusted and committed advisor to Comar for over 5 years. We relied on John and his team to execute our successful ac-quisition strategy and knew they were the right choice when we sought to bring in a financial partner. They are clearly plastic and packaging industry experts and guided us through every step of the transaction process. We would highly recommend PMCF to other companies considering an acquisi-tion or sale.” PMCF is continuing to assist the Company in pursuing acquisi-tion candidates in North America and Europe.

For more information v is i t www.pmcf.com