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| On December 31, 2017, Chase Corporation (NYSE American: CCF) acquired all equity of Stewart Superabsorbents (SSA), LLC (d.b.a. “Zappa Stewart”), an advanced superabsorbent polymer (SAP) formulator and solutions provider, and entered into multi-year leases at both its existing locations. Acquisition Update: Chase Corporation acquires Zappa Stewart Zappa Stewart Overview Acquisition Factsheet Existing Chase Domestic Production Facilities ü Purchase Price: $71.4 million (net of cash received, pending any final working capital adjustment and excluding one-time deal costs). ü ü ü Key Personnel: Former Zappa-Tec owner Quint Barefoot and SSA member Kip Clyburn, have both joined Chase Corporation in key roles. ü Financing: Equity purchase paid for with combination of $65 million draw on existing revolving credit facility and cash on hand. “Our organization is excited to become part of the dynamic Chase team. Becoming part of the Chase platform creates significant opportunities to deploy proprietary polymer solutions across diverse market segments. This increased scale and geographic reach for our specialty reagents will generate new opportunities for our personnel, new perspectives and sustainable growth.” - Quint Barefoot, Zappa Stewart’s Managing Partner [1] Chase’s international production facilities in UK, China and India, not shown Westwood, MA Headquarters Hickory, NC Superabsorbents McLeansville, NC Superabsorbents Newly acquired Production Facilities (entered into multi-year leases) “This is a highly complementary acquisition for Chase Corporation which leverages our existing channels to industrial markets and allows us to deliver more value to our customers. Zappa Stewart’s proven protective materials technology is a great fit with our core strategy and extends our reach into growing medical and consumer applications.” - Adam P. Chase, President and CEO Acquired Company Overview: solutions provider of specialty materials for water and liquid management, remediation and protection. Employees: ~ 60 Products: Superabsorbent Powder, Superabsorbent Liquid, Superabsorbent Hot Melt Adhesive, Customized Superabsorbent solutions. End Markets: diverse markets, including medical, environmental, infrastructure, wire and cable, energy and consumer products. Expands Chase’s Domestic Footprint [1] ü Financial Performance Metrics: In the most recently completed calendar year, SSA and its recently acquired Zappa-Tec business (collectively “Zappa Stewart”) had combined revenue in excess of $24 million. Chase expects this acquisition to be immediately accretive to its earnings. Deal Arrangement: Self-arranged. Acquisition/Operational Strategy: Inorganic growth is one of Chase’s three core strategies; Chase intends to fully integrate Zappa Stewart into its shared service platform; to be included in the Industrial Materials operating segment. |