Chesapeake’s European Specialty Packaging Business Announces Acquisition PlansRichmond, Va. – Chesapeake Corporation (NYSE:CSK) today announced that its European specialty packaging subsidiary, Field Group plc, intends to acquire the Scottish folding carton business of SCA Packaging. This business, with revenues of approximately £5 million, (approximately $8.2 million), based in Pollokshaws, Glasgow, Scotland, was acquired by SCA from Rexam in February 1999, and previously traded under the name John Horn.Chesapeake President and Chief Executive Officer Thomas H. Johnson said, “This acquisition should strengthen Field’s position in the United Kingdom premium drinks packaging market. Chesapeake is a leading supplier of value added folding cartons and we are committed to fortifying our European and global position in select market sectors.” Closing of the sale, which is expected in the first quarter of 2000, is subject to customary conditions, including completion of due diligence activities, and the approval of the transaction by regulatory authorities. Chesapeake Corporation, headquartered in Richmond, Va., is a global leader in specialty packaging and merchandising services. Chesapeake is the largest North American producer of temporary and permanent point-of-purchase displays, the North American leader for litho-laminated packaging, the leading European folding carton, leaflet and label supplier, and a local leader in specific U.S. markets for customized, corrugated packaging. Chesapeake has over 40 locations in North America, Europe and Asia. Chesapeake’s net sales in 1998 were $950.4 million. Chesapeake’s website is www.cskcorp.com.
This news release, including comments by Thomas H. Johnson, contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause Chesapeake’s actual results to differ materially from those expressed in the forward-looking statements including, but not limited to: competitive products and pricing; production costs, particularly for raw materials such as corrugated box folding cartons and display materials; fluctuations in demand; governmental policies and regulations affecting the environment; interest rates; currency translation movements; and other risks that are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission.
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