Mr. Phil Mittleman reports

AIMIA'S TUFROPES SUBSIDIARY TO ACQUIRE CORTLAND INDUSTRIAL FOR $26.6 MILLION

Aimia Inc.'s Tufropes subsidiary has acquired Cortland Industrial LLC from Enerpac Tool Group Corp. for $26.6-million (1).

Cortland is a leading global designer, manufacturer and supplier of technology-driven synthetic ropes, slings and tethers to the aerospace and defence, marine, renewable, and other diversified industrial end markets. Founded in 1979 and operating manufacturing locations in Anacortes, Wash., and Houston, Tex., Cortland is a widely recognized brand with an industry-leading portfolio of custom-engineered, innovative, high performance synthetic fibre rope solutions for demanding applications. Cortland reported revenue of $36.5-million (1) for the most recent trailing 12-month period ended May 31, 2023. The transaction is immediately accretive to earnings and provides a U.S. footprint for Tufropes as well as numerous sales and operational synergies. The transaction perimeter excludes the Cortland Biomedical business, which Enerpac will retain. To date, Cortland has effectively operated as a stand-alone subsidiary within the Enerpac corporate structure.

The transaction represents a major strategic step for Tufropes and underscores Aimia's stated plan to expand Tufropes's global operations with a focus on premium, value-added products. The combined business will operate under the Cortland name while retaining both the Cortland and Tufropes brands for their respective product portfolios. The transaction combines two of the industry's leading brands with distinct product and end-market specializations. Tufropes plans to retain 100 per cent of the Cortland employees, who are predominantly based in the United States.

The transaction was financed with cash on hand. Liquidity for this purchase was expected to be provided by a planned debt financing at Tufropes. However, this financing has been delayed by uncertainty surrounding recent activist shareholder activity.

Phil Mittleman, chief executive officer of Aimia, said: "We are excited to add a brand with more than 40 years of innovative design and highly engineered manufacturing processes, which are now benchmarks within the industry. The highly synergistic Cortland platform will accelerate Tufropes's global reach, expand its intellectual property portfolio and bolster its product offerings. This transaction underscores Tufropes's focus and commitment to becoming the world's leading provider of fibre rope and netting solutions in a highly fragmented industry. We are thrilled to announce this combination just months after closing the Tufropes acquisition in March, and we continue to evaluate and pursue other exciting opportunities to grow this business further."

Jack Wang, president of Tufropes, added: "Cortland will be a cornerstone within our company's premium product lineup, solidifying our position as a leader in high-modulus polyethylene (HMPE) fibres and customized solutions. With an impressive assortment of patents and trademarks, Cortland brings a rich history and outstanding technical expertise that aligns with our broader investment thesis of synthetic fibre rope replacing legacy steel alternatives. Moreover, the two management teams are a natural combination, significantly enhancing our value proposition to our customers by offering a full range of products and capabilities."

(1) This is based on a U.S.-dollar/Canadian-dollar exchange rate of 1.328 per the Bank of Canada as of July 10, 2023.

About Aimia Inc.

Aimia is a holding company with a focus on making long-term investments in private and public companies, on a global basis, through controlling or minority stakes. The company owns a portfolio of investments, including 100-per-cent ownership of Tufropes, a global leader in the manufacturing of high performance synthetic fibre ropes and netting solutions for global aquaculture, maritime and other various industrial customers; 94-per-cent ownership of Bozzetto Group, one of the world's largest ESG-focused (environmental, social and governance) providers of specialty sustainable chemicals; a 10.85-per-cent stake in Clear Media Ltd., one of the largest outdoor advertising firms in China; a 48.9-per-cent equity stake in Kognitiv, a global SaaS (software as a service) company inspiring customer loyalty through data-driven personalization; as well as an 11.9-per-cent equity stake in Trade X, a global B2B (business-to-business) cross-border automotive trading platform.

About Tufropes

Founded in 1992, Tufropes is one of the world's leading global manufacturers of high performance synthetic fibre ropes and netting solutions. Tufropes's highly engineered products are typically used in mission-critical applications in the aquaculture and maritime sectors as well as diversified industrial and commercial end markets. Tufropes's products are known for their unique combination of design and performance characteristics (including the ability to operate in harsh maritime environments, abrasion resistance, high strength-to-weight ratios and UV (ultraviolet) radiation tolerance). Through its modern, cost-efficient manufacturing facilities across India, Tufropes maintains the world's largest vertically integrated fibre manufacturing operations, with capacity to produce over 70,000 metric tonnes of rope and netting solutions per year. Tufropes boasts a product portfolio of over 35,000 individual SKUs (stock-keeping units) and through an in-house engineering team is uniquely positioned to capture an increasing share of several attractive end markets by developing tailored offerings, often in conjunction with its customers. Tufropes's revenue is geographically diverse, with its products sold in over 70 countries, with 34 per cent of revenues generated in Europe, 34 per cent in Asia, 20 per cent in the Americas and 12 per cent in Australasia.

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