Mr. Geoffrey Martin reports

CCL INDUSTRIES SIGNS AGREEMENT TO ACQUIRE SLEEVER INTERNATIONAL

CCL Industries Inc. has signed a binding option agreement to acquire Sleever International Company SA, its subsidiaries and related companies. Sleever is a family-owned provider of shrink sleeve labels and application equipment plus decorating services for consumer packaged goods and health care customers globally. Headquartered near Paris, France, Sleever operates 11 manufacturing facilities in Canada, France, Germany, Belgium, Ireland, Poland, China and Brazil. Sales for the calendar year of 2025 were approximately $213-million with an estimated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 11.1 per cent. The purchase consideration, subject to customary closing adjustments, is estimated at approximately $151-million, paid in a combination of cash and assumed net debt. Net tangible assets are expected to represent approximately 90 per cent of the CCL purchase price equation. The transaction should close by mid-2026, subject to the completion of certain procedures, including workers council consultations in France.

Geoffrey T. Martin, president and chief executive officer of CCL Industries, commented: "We have known Eric Fresnel, the visionary, entrepreneurial leader and principal shareholder of Sleever, for almost 20 years. We are excited to have the opportunity to combine our respective sleeve product lines, together, approximately $700-million sales in 2025. Over the next several years, we aim to raise Sleever's adjusted EBITDA margins up to the CCL segment average through a combination of strategic investments to drive innovation, cost savings and new sales growth opportunities. Eric Fresnel will continue with us postclose to provide support in an advisory capacity and we look forward to welcoming Sleever's 900 employees to our company."

CCL Industries employs approximately 26,000 people operating 214 production facilities in 42 countries with corporate offices in Toronto, Canada, and Framingham, Mass. CCL is the world's largest converter of pressure-sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, health care and chemicals, consumer electronic device, and automotive markets. Extruded and laminated plastic tubes, aluminum aerosols and specialty bottles, folded instructional leaflets, precision decorated and die cut components, electronic displays, polymer banknote substrate, and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers available alongside complementary products sold through distributors, mass-market stores and e-commerce retailers. Checkpoint is a leading developer of RF- (radio frequency) and RFID-based (radio frequency identification) technology systems for loss prevention and inventory management applications, including labeling and tagging solutions, for the retail and apparel industries worldwide. Innovia is a leading global producer of specialty, high performance, multilayer, surface engineered films for label, packaging and security applications. The company is partly backward integrated into materials science with capabilities in polymer extrusion, adhesive development, coating and lamination, surface engineering, and metallurgy, deployed as needed across the four business segments.

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