CHARGEURS (EPA:CRI) - CHARGEURS speeds up the change in scale of its Technical Substrates division

Transparency directive : regulatory news

17/01/2019 17:45

CHARGEURS SPEEDS UP THE CHANGE IN SCALE OF ITS TECHNICAL SUBSTRATES DIVISION

                                PRESS RELEASE

                                                    Paris - January 17, 2019

    Chargeurs Technical Substrates enters a new step within its development

* Internationalization driven by Leach acquisition
* External growth strategy scaled up with a view to crossing the EUR100m-line
  in revenue by 2021
* Sampiero Lanfranchi, former Group Executive VP for International Business
  Development and Acquisitions, promoted to the position of General Manager of
  Chargeurs Technical Substrates - CTS
* Augmented organization revolving around two strategic core businesses:
  o Senfa Technologies, an industrial operation dedicated to innovative
    textiles
  o Leach Visual Solutions, graphics services dedicated to creating high-end
    experiences
* Establishment of high-potential industrial partnerships

" On the heels of the successful integration of Leach into Chargeurs Technical
Substrates in 2018, this new organization is a major milestone on the road to
internationalizing our business. The promotion of Sampiero Lanfranchi will
provide CTS with the resource necessary to consolidate its global leadership
position in order to achieve the strategic ambition set by the Group for the
business: to pass the threshold of EUR100 million in full-year sales by 2021.
The Group is grateful to Patrick Bonnefond for transforming a single-site
division into a global player with strong potential, and enjoying close-knit
relationships with major global, European, American and overseas export
customers" said Michaël Fribourg, Chairman and Chief Executive Officer.

A division focused on high-potential textile and graphic innovations serving a
worldwide clientele

Pursuing its ambition to constantly renew its offering of one-of-a-kind
solutions while cultivating its passion for innovation, Chargeurs Technical
Substrates in 2018 launched a new breakthrough innovation, Sublimis, which was
rewarded with the "Product of the Year" award at the SGIA in Las Vegas. Driven
by the Game Changer Program launched by the Group, CTS has beefed up its direct
sales network in order to increase its global reach and consolidate its leading
positions in the advertising, communication and interior design markets, while
moving closer to end customers, CTS is now moving up the value chain and
targeting major export customers, to speed up profitable growth.

UK's Leach, an innovative nugget which changed the scale of the division in
2018.

In May 2018, Chargeurs Technical Substrates acquired Leach, a UK company
founded in 1891 which is a leading provider of visual communication solutions
for the high-end retail and museum markets. Leach stands out for its
unparalleled reliability, enabling it to serve extremely prestigious
institutions such as the National Army Museum, the United States Embassy in
London and the National Charter Monument in Bahrain. Recognized as an
innovative trailblazer in its field, Leach was recognized in 2008 for its
unique expertise with a Queen Award, the most renowned British distinction to
be awarded in the business world, which was presented by the Queen of
England.

This acquisition enabled Chargeurs Technical Substrates to further premiumize
its offer by providing innovative integrated solutions and introducing a new
global dimension to its activities. The Division has thus been able to
significantly expand its industrial and geographical footprint, with more than
90% of end customers located outside France.

Sampiero Lanfranchi Promoted to The Position of General Manager of Chargeurs
Technical Substrates

The Group revamped CTS's governance structure by announcing the promotion of
Sampiero Lanfranchi to the position of General Manager of CTS so as to groom
him to oversee the further acceleration of its international expansion.
Sampiero Lanfranchi, who will continue to act as Advisor to the Chairman, will
contribute his extensive international development experience to Chargeurs
Group, building on the success of acquisitions carried out, from 2017 onwards,
at Chargeurs Protective Films - Omma, Chargeurs Technical Substrates - Leach,
and Chargeurs Fashion Technologies - PCC Interlining, which generated more than
EUR90 million in additional profitable revenue for the Group on a full-year
basis.

The new Managing Director, who was already Leach's Chief Integration Officer,
will pursue a policy of strengthening CTS's leadership positions and
consolidating the business in order to strengthen its technological and
industrial lead, enabling it to further improve its profitable growth and cross
the threshold of EUR100 million by 2021.

An augmented organization located in 2 strategic geographical areas

Sampiero Lanfranchi who is to take over the Management of Chargeurs Technical
Substrates has been tasked with modernizing the division's governance by
relying on one business manager based in France site - Senfa - and another
based in the UK - Leach - who will be reporting directly to him: Sandrine
Hornecker will be in charge of running Senfa's Sélestat site and James Lavin
of running Leach in the United Kingdom.
This new organization will make it possible to streamline internal operations
within this business segment and further enhance the integrated solutions
offer.

Chargeurs' Technical Substrates division is composed of:

* Senfa Technologies - new name given to the French business to better reflects
  its innovative power

A company with a rich history, based in Sélestat, in Alsace - France, Senfa
focuses on the development of innovative, high- added value textiles for
internal and external communication media that have applications in various
fields, from interior design to sports facilities. In 2017, it posted sales of
EUR25.8 million. Sandrine Hornecker, who currently holds the position of
Senfa's Chief Financial Officer, is to take over the management of the
Sélestat site as Deputy Managing Director.

* Leach Visual Solutions

A UK company located in Huddersfield, near Leeds, and recognized as a pioneer
in providing integrated visual communication solutions dedicated to the
high-end retail industry, leading museums and institutions worldwide, Leach,
which was acquired in May 2018 and is managed by James Lavin, posted revenues
of EUR11 million in 2017.

A sustainable business model based on increased customer proximity

Over the past few years, CTS has successfully evolved its business model by
establishing unique and direct relationships with key customers in overseas
export markets. At the same time, the Division has entered into a first
strategic industrial partnership on innovation-intensive textiles and is
currently working on other agreements. These strategic partnerships represent a
cumulative revenue growth potential of more than 10% a year on a full-year
basis.

Acquisition strategy to be scaled up in the coming 36 months

Thanks to an international management team, CTS intends to intensify its
acquisition policy by 2021.

Biography

Sampiero LANFRANCHI
General Manager of Chargeurs Technical Substrates and Advisor to the Chairman
of Chargeurs 36 years old

Sampiero Lanfranchi is today taking over the Management of Chargeurs Technical
Substrates - while continuing in his role as Advisor to the Chairman - his
brief is to pursue the strategic development of this fast-growing division of
the Group, speed up its consolidation and streamline its organization. He
joined Chargeurs Group in Q2, 2017 as Group Executive Vice-President for
International Business Development and Acquisitions. Since 2017, he has
successfully led the Group's strategic growth by finalizing 3 acquisitions in 3
different business segments, thus adding more than EUR90 million in additional
profitable revenue to the Group's sales on a full-year basis.

Born in 1982, Sampiero Lanfranchi is a lawyer by training, a member of the New
York Bar and a former member of the Paris Bar. He holds a Degree in Advanced
Studies - DEA - in international law from the University of Paris II, and is a
graduate of HEC, ESCP/EAP and the University of Pennsylvania Law School. He
began his career with an American law firm and then went on to work for a
private equity fund in London.

Before joining Chargeurs in 2017, he had been a member of the Corporate and M&A
department of the Parisian law firm De Pardieu Brocas Maffei AARPI since 2010,
where he took part in many transactions, particularly in the industrial sector.

2019 Financial Calendar

Wednesday, January 30, 2019
(after trading)                 Financial Information - 2018 annual revenue

ABOUT CHARGEURS

Chargeurs is a global manufacturing and services group with leading positions
in four segments: temporary surface protection, garment interlinings, technical
substrates and combed wool.

It has some 2,000 employees based in 45 countries on five continents, who serve
a diversified customer base spanning more than 90 countries.

In 2017, revenue totaled EUR533 million, of which more than 90% was generated
outside France.

CONTACTS - www.chargeurs.fr
Group Corporate Communications * +33 1 47 04 13 40 *
comcorporate@chargeurs.fr
Group Financial Communications * +33 1 47 04 13 40 * comfin@chargeurs.fr

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