PRESS RELEASE January 28, 2015 ADDITIONAL INFORMATION RELATED TO AQUISITION Due to, i.a., the acquisition of MeadWestvaco Corporation's European tobacco, chocolate confectionery and consumer apparel packaging operations ("MWV Folding Carton"), the company has decided to publish additional information on the transaction and its implications on AR Packaging that may be considered to be price sensitive for its outstanding EUR 80 million senior secured bond loan listed on Nasdaq Stockholm. * The value of the transaction is approximately EUR 70 million. * AR Packaging estimates that the acquired business generates approximately EUR 18 million in EBITDA for 2014 (including contribution margin from Svitavy). More than EUR 10 million of restructuring costs is expected over the next two years, potentially resulting in annualized synergy effects of up to EUR 4 million. MWV Folding Carton's sales and EBITDA have been decreasing over the past few years but is expected to stabilize and increase. * AR Packaging has estimated maintenance capex and the net working capital profile of the acquired business to be in line with that of AR Packaging. * A major part of the sales derived from one tobacco customer, thereby increasing customer concentration and further strengthening AR Packaging's position in tobacco packaging market. * In relative measures, the company does not increase its Russian exposure. For further information please contact: Niclas Nyström, CFO, ÅR Packaging Group AB Phone +46 701 44 56 64, email niclas.nystrom@ar-packaging.com ÅR Packaging Group AB AR Packaging is one of Europe's leading companies in the packaging sector with a turnover exceeding EUR 400 million and 1 600 employees in 14 factories in 7 countries. The head office is situated in Lund, Sweden. AR Packaging was formed in 2011 as a merger of A&R Carton, one of Europe's leading carton board packaging groups and Flextrus, a leader in northern Europe within flexible packaging. The group creates added value to customers by a broad product offering and deep knowledge of packaging. Forward Looking Statements Certain information contained in this statement, including any information on the Group's plans or future financial or operating performance and other statements that express the Issuer's management's expectations or estimates of future performance, constitute forward-looking statements. Such statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. The Group cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of the Group to be materially different from the Group's estimated future results, performance or achievements expressed or implied by those forward-looking statements. The information contained in this press release is such information that ÅR Packaging Group AB is required to publish in accordance with the Securities Market Act (2007:528) or/and the Financial Instruments Trading Act (1991:980). The information was submitted for publication on 28(th) of January at 10 pm. [HUG#1890255]
ÅR Packaging Group AB releases additional information related to acquisition announced January 22, 2014
| Source: ÅR Packaging Group AB