Field Group to Accept Chesapeake's Increased Cash Offer

Chesapeake Corp. Friday increased its offer to acquire the outstanding shares of Field Group plc, a U.K.-based packaging company specializing in the design and production of cartons, containers, printed leaflets and labels. The all-cash offer, to be made through a Chesapeake subsidiary, Chesapeake UK Acquisitions plc, has been unanimously recommended to Field's shareholders by Field's board of directors. The offer values each Field share at (pound) 3.60, placing a value of approximately U.S. $355 million on Field's issued share capital. Including assumed debt of approximately $50 million, the total enterprise is valued at $405 million.

"I am delighted that the board of Field Group has recommended the acceptance of our increased offer," said Chesapeake president and CEO Thomas H. Johnson. "From touring Field's impressive facilities and meeting their management team, my executive team and I believe there are strong cultural similarities between our people."

Field is focused on three customer sectors: Pharmaceuticals and Healthcare; International and Branded Products; as well as Food and Household. The company operates 17 facilities in the United Kingdom, Ireland, the Netherlands, Belgium and France. Field's Pharmaceutical and Healthcare division offers a pan-European integrated solution for cartons, labels and leaflets. Its International and Branded Products division produces packaging and labels predominately for the drinks, tobacco and confectionery markets, and its Food and Household division has established key relationships with multinational consumer products companies.

For the 53 weeks ending Apr. 4, 1998, Field reported profits before tax of (pound)24 million on revenue of (pound)245 million, or $40 million on revenues of $400 million.