Industry Observations June 30, Containers, Packaging and Paper Products Industries

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1 Industry Observations June 30, 2017 Containers, Packaging and Paper Products Industries

2 (USD in millions, except per share data) Company Name Ticker Plastic, Metal and Glass Containers Price at 06/30/17 % of 52 Week High Market Data LTM Operating Data Forward Estimates Equity Value Enterprise Value Debt / Total Capital Total Assets LTM Revenue LTM CY 2017 Revenue Estimate CY 2017 Estimate AptarGroup, Inc. ATR $ % $5, $6, % $2, $2, $ $2, $ Ball Corporation BLL $ % $14, $22, % $16, $9, $1, $10, $1, Berry Global Group, Inc. BERY $ % $7, $13, % $8, $6, $1, $7, $1, Crown Holdings, Inc. CCK $ % $8, $13, % $9, $8, $1, $8, $1, Greif, Inc. GEF $ % $2, $3, % $3, $3, $ $3, $ Myers Industries, Inc. MYE $ % $ $ % $ $ $57.90 $ $61.00 Newell Brands Inc. NWL $ % $25, $36, % $33, $15, $2, $14, $2, Owens-Illinois, Inc. OI $ % $3, $9, % $9, $6, $1, $6, $1, Silgan Holdings Inc. SLGN $ % $3, $5, % $3, $3, $ $4, $ Tupperware Brands Corporation TUP $ % $3, $4, % $1, $2, $ $2, $ Paper Packaging Bemis Company, Inc. BMS $ % $4, $5, % $3, $4, $ $4, $ Graphic Packaging Holding Company GPK $ % $4, $6, % $4, $4, $ $4, $ Packaging Corporation of America PKG $ % $10, $12, % $5, $5, $1, $6, $1, Sealed Air Corporation SEE $ % $8, $12, % $7, $6, $1, $4, $ Sonoco Products Company SON $ % $5, $6, % $4, $4, $ $4, $ UFP Technologies, Inc. UFPT $ % $ $ % $ $ $17.58 $ N/A Paper Products P. H. Glatfelter Company GLT $ % $ $1, % $1, $1, $88.36 $1, $ Clearwater Paper Corporation CLW $ % $ $1, % $1, $1, $ $1, $ Schweitzer-Mauduit International, Inc. SWM $ % $1, $1, % $1, $ $ $ N/A Notes: LTM (latest twelve months); Enterprise Value (market capitalization less total cash and short-term investments plus short-term borrowings and total long-term debt); (earnings before interest, taxes, depreciation and amortization) Source: Capital IQ The material contained in this publication is meant to provide general information regarding valuation topics. This publication does not constitute investment advice with respect to the securities of any company discussed herein, is not intended to provide information upon which to base an investment decision, and should not be construed as such. Professional advice should be obtained before taking any action based on the information contained herein. Publicly available information utilized in this publication has been obtained from sources deemed to be reliable. Houlihan does not guarantee the accuracy or completeness of the information provided within this publication. The material presented reflects information known to the authors at the time this publication was written and this information is subject to change. Houlihan Capital 2

3 Select Containers, Packaging and Paper Products Public Company Valuation Metrics (USD in millions, except per share data) Company Name Ticker Plastic, Metal and Glass Containers Return On Assets Return On Equity LTM Operating Statistics Return On Revenue Capital Growth Growth Margin TEV/ LTM Revenue Trading Multiples TEV/ TEV/ CY 2017 LTM Revenue TEV/ CY 2017 AptarGroup, Inc. ATR 7.7% 17.0% 9.5% 1.7% 2.6% 20.2% 2.6x 2.6x 12.9x 12.5x Ball Corporation BLL 4.4% 19.3% 6.3% 24.9% 36.1% 14.9% 2.3x 2.1x 15.4x 12.7x Berry Global Group, Inc. BERY 5.1% 75.9% 6.5% 16.0% 23.7% 17.9% 2.0x 1.8x 11.3x 9.6x Crown Holdings, Inc. CCK 6.8% 87.4% 11.0% -4.2% 3.3% 16.0% 1.6x 1.6x 10.2x 10.0x Greif, Inc. GEF 6.3% 9.8% 9.2% 0.3% 7.0% 13.1% 1.1x 1.1x 8.6x 8.1x Myers Industries, Inc. MYE 3.8% 8.4% 5.2% -8.0% -11.7% 10.6% 1.3x 1.3x 12.7x 12.0x Newell Brands Inc. NWL 5.1% 16.3% 6.9% 155.0% 155.1% 16.9% 2.4x 2.5x 14.2x 13.2x Owens-Illinois, Inc. OI 4.2% 41.9% 6.5% 6.4% 5.3% 15.8% 1.4x 1.4x 8.9x 7.2x Silgan Holdings Inc. SLGN 5.9% 25.9% 8.1% -3.1% 2.2% 13.2% 1.5x 1.3x 11.2x 9.3x Tupperware Brands Corporation TUP 12.5% 104.1% 20.3% 0.7% 3.3% 17.2% 1.9x 1.9x 11.0x 9.9x Mean 6.2% 40.6% 8.9% 19.0% 22.7% 15.6% 1.8x 1.7x 11.7x 10.5x Median 5.5% 22.6% 7.5% 1.2% 4.3% 15.9% 1.8x 1.7x 11.3x 10.0x Paper Packaging Bemis Company, Inc. BMS 7.3% 18.5% 9.7% 0.8% 1.2% 14.5% 1.4x 1.4x 9.8x 10.1x Graphic Packaging Holding Company GPK 5.4% 19.0% 7.5% 3.3% -4.1% 16.4% 1.5x 1.5x 9.2x 8.9x Packaging Corporation of America PKG 9.4% 27.1% 12.5% 3.5% 4.8% 20.0% 2.2x 2.1x 10.9x 9.9x Sealed Air Corporation SEE 6.9% 61.9% 10.3% 8.2% 6.4% 15.2% 1.9x 3.0x 12.4x 15.6x Sonoco Products Company SON 6.4% 17.7% 9.5% -5.1% -2.1% 13.2% 1.3x 1.3x 10.2x 9.6x UFP Technologies, Inc. UFPT 5.9% 8.2% 6.7% 6.7% -0.7% 11.8% 1.1x 1.1x 9.5x N/A Mean 6.9% 25.4% 9.4% 2.9% 0.9% 15.2% 1.6x 1.7x 10.3x 10.8x Median 7.3% 18.8% 9.6% 3.4% 0.2% 14.9% 1.5x 1.5x 10.0x 9.9x Paper Products P. H. Glatfelter Company GLT 0.9% 2.5% 1.3% -3.0% -35.5% 5.5% 0.8x 0.8x 14.1x 7.4x Clearwater Paper Corporation CLW 3.5% 8.2% 4.9% -1.2% -22.6% 10.4% 2.1x 1.9x 10.3x N/A Schweitzer-Mauduit International, Inc. SWM 5.6% 14.8% 6.8% 8.6% 5.6% 20.5% 0.9x 0.9x 8.4x 7.6x Mean 3.3% 8.5% 4.3% 1.5% -17.5% 12.1% 1.3x 1.2x 10.9x 7.5x Median 3.5% 8.2% 4.9% -1.2% -22.6% 10.4% 0.9x 0.9x 10.3x 7.5x Notes: LTM (latest twelve months); NTM (next twelve months); (earnings before interest, taxes, depreciation and amortization); TEV (total enterprise value) Source: Capital IQ Houlihan Capital 3

4 Containers, Packaging and Paper Products Public Company LTM Equity Performance 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 5.00% 10.00% Plastic, Metal and Glass Containers Paper Products S&P 500 Index Paper Packaging Dow Jones Industrial Average Note: The indices are derived from the equity performance of the previously listed companies. Source: Capital IQ Houlihan Capital 4

5 Recent M&A Activity in the Containers, Packaging and Paper Products Industries July 1, 2016 to June 30, 2017 (USD in millions) Close Date Target Acquirer Target Company Primary Industry Implied Enterprise Value 8/16/2016 BWAY Parent Company, Inc. Stone Canyon Industries, LLC Metal and Glass Containers $2, /6/2017 Multi Packaging Solutions International Limited WestRock Company Paper Packaging $2, /22/2017 Consolidated Container Company LLC Loews Corporation Metal and Glass Containers $1, /7/2016 Anchor Glass Container Corporation CVC Capital Partners Limited; BA Glass BV; CVC Metal and Glass Containers $1, /20/2017 AEP Industries Inc. Berry Plastics Group, Inc. (nka:berry Global Paper Packaging $ /13/2017 Letica Corporation RPC Group Plc Paper Packaging $ /29/2016 Tim-Bar Corporation Packaging Corporation of America Paper Packaging $ /31/2016 Weyerhaeuser NR Company, Liquid Packaging Board Business Nippon Paper Industries Co., Ltd. Paper Products $ /8/2016 Rigid Plastics Blow Molding Operations Amcor Rigid Plastics USA, LLC; Amcor Packaging Metal and Glass Containers $ /14/2017 Packaging Holdings, Inc. Sonoco Plastics, Inc. Paper Packaging $ /15/ ,000 Acres of Timberlands in Western Oregon Campbell Global Forest Products $ /9/2017 US Corrugated, Inc., Certain Operations WestRock Company Paper Packaging $ /14/2016 Enviva Pellets Sampson, LLC Enviva Partners, LP Forest Products $ /2/2016 NACS USA Inc. (nka:novo Building Products, LLC) Blue Wolf Capital Partners LLC Forest Products $ /30/2016 Columbus Container Inc. Packaging Corporation of America Paper Packaging $ /29/2016 Scotch & Gulf Lumber LLC Canfor Corporation Forest Products $ /1/2016 North Pacific Paper Corporation Weyerhaeuser NR Company Paper Products $ /16/2016 Manchester Industries, Inc. Clearwater Paper Corporation Paper Products $ /28/2016 Plastic Packaging Inc. Sonoco Products Company Metal and Glass Containers $ /13/2017 Star Pizza Box, Inc. WestRock Company Paper Packaging $ /22/2016 7,300 Acres of Timberland in Western Washington Pope Resources, A Delaware Limited Partnership Forest Products $ /31/2017 6,500 Acre Parcel of Timberland N/A Forest Products $ /3/2016 Steeltin Can Corporation Independent Can Company Metal and Glass Containers $ /3/2017 Daiichi Sankyo, Inc., Pharmaceutical Packaging Facility in Sharp Corporation Metal and Glass Containers $ /4/2017 J.G Finneran Associates, Inc. Porvair plc Metal and Glass Containers $ /30/2016 6,300 Acres of Timberland in Alabama, Georgia, Florida and N/A Forest Products $ /13/2017 Werthan Packaging, Inc. Gateway Packaging Company LLC Paper Packaging $7.26 5/31/2017 Gehl Foods, LLC, West Bend Bottle Manufacturing Plant in ALPLA Inc. Metal and Glass Containers $5.43 5/8/2017 Clone Shipper LLC THC Biomed Intl Ltd. Metal and Glass Containers $ /27/2016 LINDAR Corporation, Bioplastic Division Solegear Bioplastic Technologies Inc. Metal and Glass Containers $0.44 6/20/2017 Four Independent Northern California Packaging Companies and Golden West Packaging Group LLC Paper Packaging NA 6/6/2017 Azon Corporation, Wide Format Media Division Dietzgen Corporation Paper Products NA 6/2/2017 Pacific MDF Products Incorporated Of South Carolina and Pacific MJB Wood Group, Inc. Forest Products NA 5/24/2017 Century Corrugated Container, Inc. Corrugated Specialties, Inc. Paper Packaging NA 5/22/2017 Bruna Seals LLC Tri-Seal Holdings, Inc. Paper Packaging NA 5/10/2017 BJK Industries, Inc. Sigma Plastics Group, Inc. Paper Packaging NA 4/30/2017 Aqualus, LLC NC Brands L.P. Metal and Glass Containers NA 4/30/2017 Hearthmark, LLC, Pine Mountain and Diamond Branded Business Royal Oak Enterprises, LLC Forest Products NA 4/28/2017 Industrial Container Services, Inc. Centerbridge Partners, L.P. Metal and Glass Containers NA 4/10/2017 Trinity Packaging Corporation ProAmpac LLC Paper Packaging NA 4/3/2017 MPF Acquisitions Inc. Transcendia Inc. Metal and Glass Containers NA 4/3/2017 Hoover Treated Wood Products, Inc. Graham Holdings Company Forest Products NA 4/3/2017 Newell Brands Inc., Rubbermaid Consumer Storage Totes United Solutions, Inc. Metal and Glass Containers NA 3/31/2017 Latham Stairs & Millworks, Inc. Concierge Renovation Company, Inc. Forest Products NA 3/27/2017 Code Plus Components LLC BMC Stock Holdings, Inc. Forest Products NA 3/27/2017 Ball Corporation, Paint and General Line Plant in Hubbard BWAY Corporation Metal and Glass Containers NA 3/27/2017 Ball Corporation, Metal Packaging Business Located in Hubbard, BWAY Corporation Metal and Glass Containers NA 3/16/2017 Miller Container Corporation Liberty Diversified International, Inc. Paper Packaging NA 3/6/2017 Quality Hardwood Sales, LLC Universal Forest Products, Inc. Forest Products NA 2/24/2017 Engineered Packaging, Inc., Protective Packaging Division Austin Foam Plastics, Inc. Metal and Glass Containers NA 2/23/ ,000 Acres of Timberlands in Alabama N/A Forest Products NA 2/7/2017 International Labs, Inc. Quality Packaging Specialists International, LLC Metal and Glass Containers NA 2/7/2017 Roseburg Forest Products Company, Inc., Manufacturing Assets in Wilsonart LLC Forest Products NA Source: Capital IQ Houlihan Capital 5

6 S&P Capital IQ - Sector Last 3 Month Equity Performance 10.0% Change in Market Cap by S&P Capital IQ Sector 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% 3/31/2017 4/30/2017 5/31/2017 6/30/2017 Energy Materials Industrials Consumer Discretionary Healthcare Financials Information Technology Telecommunication Services Utilities Consumer Staples Note: The indices are derived from the equity performance of the S&P Capital IQ Sectors. Source: Capital IQ Houlihan Capital 6

7 M&A Deal Flow Statistics by S&P Capital IQ Sector M&A Deal Count - Number of Transactions 16,000 14,000 12,000 10,000 8,000 6,000 6,957 8,845 7,176 7,735 7,544 8,953 7,561 8,024 8,265 8,970 7,120 6,788 6,011 6,954 6,702 5,967 4,000 2,000 4,641 5,372 4,647 4,989 5,391 5,700 5,147 5,062 5,134 5,244 4,543 4,297 4,033 4,197 4,316 3,697 0 $1,000 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q M&A Deals - USA & Canada M&A Deals - Rest of the World M&A Deal Count - Total Transaction Value ($ Billions) $900 $800 $700 $600 $500 $400 $343.6 $409.1 $321.9 $372.8 $381.4 $462.7 $430.2 $512.6 $406.6 $440.3 $419.0 $268.0 $295.1 $445.7 $364.7 $336.2 $300 $200 $100 $246.4 $338.2 $400.7 $251.0 $289.7 $450.7 $402.3 $385.2 $499.4 $408.0 $403.0 $375.6 $293.7 $363.7 $363.7 $338.9 $0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Transaction Value - USA & Canada Transaction Value - Rest of World Houlihan Capital 7

8 M&A Deal Flow Statistics by S&P Capital IQ Sector Percentage Dollars Invested by Sector 2Q17 Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Real Estate Telecommunications Services Utilities Not Listed Houlihan Capital 8

9 About Houlihan Capital Houlihan Capital is a leading, solutions-driven valuation, financial advisory and boutique investment banking firm. We pride ourselves on being thought leaders in an ever-changing landscape. Houlihan Capital is SOC-compliant, a FINRA and SIPC member and committed to the highest levels of professional ethics and standards. Valuation & Financial Advisory We provide an array of services that include enterprise valuations, portfolio valuation, valuation of carried interest, transaction opinions, tax and financial reporting compliance, purchase price allocations, and a wide variety of consulting services through our Financial Advisory Group. Investment Banking Through our Investment Banking Group, we offer sell side/buy side advisory, private placement and capital raises. Special Situations Through our Special Situations desk, we provide services that fit outside the archetypal verticals, including liquidity solutions, transactional advisory, and secondary market advisory and trading. For additional information about our Industry expertise and services, visit: Andrew Smith Paul Clark Michael Norton pclark@houlihancapital.com asmith@houlihancapital.com mnorton@houlihancapital.com