<PAGE>
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN CONSENT STATEMENT
SCHEDULE 14A INFORMATION
Consent Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant [_]
Filed by a Party other than the Registrant [X]
Check the appropriate box:
[_] Preliminary Consent Statement [_] Confidential, For Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[_] Definitive Consent Statement
[X] Definitive Additional Materials
[X] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12
SHOREWOOD PACKAGING CORPORATION
(Name of Registrant as Specified in its Charter)
CHESAPEAKE CORPORATION
SHEFFIELD, INC.
(Name of Person(s) Filing Consent Statement)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act
Rules 14a-6(i)1 and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
<PAGE>
On January 6, 2000, Chesapeake filed the following slide presentation as
Exhibit (f)(3) to Amendment No. 6 to its Schedule 14D-1. Such slide presentation
may be used by persons making oral solicitations of Shorewood's stockholders by
or on behalf of Purchaser and Chesapeake.
<PAGE>
[Chesapeake Corporation logo]
defining the future
<PAGE>
[Chesapeake Corporation logo]
This presentation includes forward-looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. While the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995 are not applicable to forward-looking statements made in
connection with a tender offer, it has not been judicially determined whether
such safe harbor provisions apply to forward-looking statements in a consent
solicitation conducted in connection with a tender offer. Changes in the
following important factors, among others, could cause Chesapeake's actual
results to differ materially from those expressed in the forward-looking
statements: competitive products and pricing; production costs (particularly for
raw materials such as corrugated box 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.
All information in this presentation concerning Shorewood Packaging Corporation,
including financial information, has been taken from or based on publicly
available documents and records on file with the Securities and Exchange
Commission and other public sources, and is qualified in its entirety by
reference thereto. Chesapeake takes no responsibility for the accuracy or
completeness of the information contained in such documents and records, or for
any failure by Shorewood Packaging Corporation to disclose events which may have
occurred or may affect the significance or accuracy of any such information, but
which is unknown to Chesapeake.
2
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[Chesapeake Corporation logo]
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CERTAIN INFORMATION CONCERNING PARTICIPANTS
Chesapeake Corporation ("Chesapeake") and Sheffield, Inc., a wholly owned
subsidiary of Chesapeake ("Purchaser"), and certain other persons named below
may be deemed to be participants in a consent solicitation (the "Consent
Solicitation") that may be conducted by Chesapeake and Purchaser in connection
with the tender offer (the "Offer") by Purchaser to purchase all of the
outstanding shares of common stock ("Shares") of Shorewood Packaging Corporation
("Shorewood") for $17.25 per Share net to the seller in cash. The participants
in this solicitation may include: (i) the directors of Chesapeake (Harry H.
Wamer, Chairman of the Board; Thomas H. Johnson, President & Chief Executive
Officer; Robert L. Hintz; James E. Rogers; John W. Rosenblum; Grank S. Royal;
Wallace Stettinius; Richard G. Tilghman; Joseph P. Viviano; and Hugh V. White,
Jr.); and (ii) certain officers of Chesapeake; J.P. Causey Jr., Senior Vice
President, Secretary & General Counsel; Andrew J. Kohut, Senior Vice President-
Strategic Business Development; Octavio Orta, Executive Vice President-Display &
Packaging; william T. Tolley, Senior Vice President-Finance & Chief Financial
Officer; Molly Remes, Director-Corporate Communications; and Joel Mostrom, Vice
President-Land Development. As of the date of this communication, 14.9% of the
outstanding Shares of Shorewood, or approximately 4.1 million Shares, are
beneficially owned by Chesapeake and Purchaser (including Shares to be purchased
pursuant to a stock purchase agreement between Chesapeake and a third-party).
Chesapeake has retained Goldman, Sachs & Co. ("Goldman Sachs") and Donaldson,
Lufkin & Jenrette Securities Corporation ("DLJ") to act as its co-financial
advisors in connection with the Offer, for which Goldman Sachs and DLJ will
receive customary fees, as well as reimbursement of reasonable out-of-pocket
expenses. Chesapeake and Purchaser have retained Goldman Sachs and DLJ to act as
their Co-Dealer Managers in connection with the Offer, for which Goldman Sachs
and DLJ will receive customary fees, as well as reimbursement of reasonable out-
of-pocket expenses. In addition, Chesapeake and Purchaser have agreed to
indemnify Goldman Sachs and certain related persons and DLJ and certain related
persons against liabilities, including certain liabilities under the federal
securities laws, arising out of each of their engagements Neither Goldman Sachs
nor DLJ believes that they or any of their respective partners, directors,
officers, employees, affiliates or controlling persons, if any, is a
"participant" as defined in Schedule 14A promulgated under the Exchange Act in
the solicitation of proxies and/or consents, or that Schedule 14A requires the
disclosure of certain information concerning Goldman Sachs or DLJ. In connection
with Goldman Sachs' role as Co-Dealer Manager to Chesapeake and Purchaser, the
following investment banking employees of Goldman Sachs may communicate in
person, by telephone or otherwise with a limited number of institutions, brokers
or other persons who are stockholders of Shorewood and may solicit consents
from these institutions, brokers or other perons: Ravi Sinba, George Mattson,
James Katzman, Peter Comisar and Jason Gilbert. In connection with DLJ's role as
Co-Dealer Manager to Chesapeake and Purchaser, the following investment banking
employees of DLJ may communicate in person, by telephone or otherwise with a
limited number of institutions, brokers or other persons who are stockholders of
Shorewood and may solicit consents from these institutions, brokers or other
persons: L. Price Blackford, Doug Brown, Daniel Schleifman, Robert Simeosky and
Andrew Kramer. Golman Sachs and DLJ each engage in a full range of investment
banking, securities trading, market-making and brokerage services for
institutional and individual clients. In the normal course of its business
Goldman Sachs and/or DLJ may trade securities of Shorewood for each of their own
accounts and the accounts of their customers and, accordingly, may at any time
hold a long or short position in such securities. Goldman Sachs and DLJ has each
informed Chesapeake that, as of the date hereof, neither of them holds any
Shares for its own account. Goldman Sachs or DLJ and/or certain of their
respective affiliates may have voting and dispositive power with respect to
certain Shares held in asset management, brokerage and other accounts. Goldman
Sachs, DLJ, and each such of their respective affiliates disclaim beneficial
ownership of such Shares.
Other than as set forth herein, to the knowledge of Chesapeake and Purchaser, as
of the date of this communication, none of Chesapeake, Purchaser, any of their
respective directors, executive offices, employees or other representatives, or
other persons known to Chesapeake or Purchaser who may solicit consents has any
interest, direct or indirect, in Shorewood by security holding or otherwise.
3
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[Chesapeake Corporation logo]
Chesapeake Management
- --------------------------------------------------------------------------------
. Tom Johnson, C.E.O.
. Bill Tolley, C.F.O.
. Joel Mostrom, Investor Relations
4
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[Chesapeake Corporation logo]
Agenda
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. Overview of Chesapeake
. Transformation
. Strategic Direction
. Offer for Boxmore
. Offer for Shorewood
. Discussion
5
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[Chesapeake Corporation logo]
TRANSFORMATION
6
<PAGE>
[Chesapeake Corporation logo]
Focused Strategy
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. Packaging and merchandising
. Targeted markets
. Defensible market positions
. Global arena
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Broaden Product Capability and Geographic Coverage in Target Markets
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7
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[Chesapeake Corporation logo]
Near-Term Actions
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. Portfolio Transformation
- Timber sale
- Tissue monetization
- Field acquisition
- CPI acquisition
- Color-Box JV pending
. Operational Excellence
- CD&P margin improvement
- Field integration
- HBU land monetization
. Financial Re-engineering
- Debt reduction
- Share re-purchase
. Acquisitions & Alliances
8
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[Chesapeake Corporation logo]
Strategic Transformation
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. Sold Kraft Paper Mill
- 2Q97
. Sold Timberlands -------- Generated $1.3 billion of cash
- 3Q 1999 |
. Tissue Partnership |
- 4Q99 |
|
. Reduced Debt
. Share Repurchase Program
. Strategic Growth Inititatives
9
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[Chesapeake Corporation logo]
Chesapeake Sales: '96 - '99
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[Pie Charts showing sales breakdown (%) as indicated in the following table]
1996: $1.1B 1999 Pro Forma: $1.0B
Description % Description %
- ----------- --- ----------- ---
Tissue 40% European Packaging 45%
Kraft Paper 30% Worldwide Displays &
U.S. Packaging 28% Merchandising 29%
Land Development 2% U.S. Packaging 24%
Land 2%
10
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[Chesapeake Corporation logo]
Current Sectors Served
- --------------------------------------------------------------------------------
[Pie Chart showing sectors served (%) as indicated in the following table]
1999 Pro Forma: $1.0 Billion
Description %
- ----------- --
Pharma-Personal Care 22%
Cosmetics-Luxury-Spirits 21%
Food-Bev. 12%
Tobacco 12%
Candy 10%
Recreation 6%
Other 5%
Home-Garden 5%
Technology-Multimedia 4%
Paper-Packaging 2%
Clothing 1%
11
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[Chesapeake Corporation logo]
Growth Criteria
- --------------------------------------------------------------------------------
. Competitive Advantage
. Accretive on Day 1
. Return in excess of cost of capital
. Target Markets
12
<PAGE>
[CHESAPEAKE CORPORATION LOGO]
Primary Target Markets
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End-Use Market
Size in 1999
(in billions) Growth Rate
Pharmaceuticals & Healthcare 115 6-8%
Technology 575 10-12%
Luxury Goods* 180 8-10%
* Premium Alcoholic Drinks, Confections, and Tobacco Products.
Source: Company studies
13
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[Chesapeake Corporation logo]
Pharmaceutical Packaging Market
- --------------------------------------------------------------------------------
. Global demand growing
- Population growth
- Aging of population
- New technology
- New regulations
. Globalizing producers
. Rationalization of suppliers
. Product packaging evolution
- Folding cartons dominate secondary packaging
- Blister packs
- Package, label, leaflet combinations
. Cross-selling opportunities
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Global capability + one-stop shopping = competitive advantage
- --------------------------------------------------------------------------------
14
<PAGE>
[Chesapeake Corporation logo]
Technology Packaging Market
- --------------------------------------------------------------------------------
. High growth rates
. Brand awareness & retail presence more important
. Need for innovative product protection
. Demand for global sourcing and one-stop shopping
. Global suppliers must have Flexo, litho, and folding carton capability
. Major locations--USA, Ireland, U.K., China, Singapore
- --------------------------------------------------------------------------------
Global capability + one-stop shopping = competitive advantage
- --------------------------------------------------------------------------------
15
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[Chesapeake Corporation logo]
1999 Growth Initiatives
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. Field Group (March `99)
- Leading European folding carton company with sector focus in
pharmaceuticals, tobacco, confectionery
- $415 million enterprise value
. Berry's Limited (May `99)
- Irish leaflet and label producer
- Part of pharmaceutical expansion into Ireland
. Mateo Cartonajes (July `99)
- Leading Spanish printing company's packaging operations
- Tobacco and pharmaceuticals
16
<PAGE>
[Chesapeake Corporation logo]
1999 Growth Initiatives (con't...)
- --------------------------------------------------------------------------------
. Consumer Promotions International (Oct. `99)
- US, UK and France
- Permanent Displays and Merchandising Systems
. Color Box JV (Pending)
- Joint venture expected to create the largest litho laminated company in
North America
17
<PAGE>
[Chesapeake Corporation logo]
Field Group
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[photograph of various pharmaceutical packaging]
. Leading specialty packaging supplier with sales of $400 million
. Reputation for quality and innovation
. Platform for European growth
18
<PAGE>
[Chesapeake Corporation logo]
Field Group
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. Well positioned - #1 specialty packaging in the UK, #1 in pharmaceutical
packaging in Europe
. Solid platform for growth across Europe
. Strong, stable management team
. Solution-based, end-user focused approach
. Top-line growth and cost synergies
. Reasonably priced -- 6.5X EBITDA
19
<PAGE>
[Chesapeake Corporation logo]
Field Group
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Major Customers
- ---------------
Pharmacia/Upjohn
Astra-Zeneca
American Home Products
Schering-Plough
Smith Kline Beecham
Johnson & Johnson
BAT
Diagio
Cadbury
Mars
Nestle's
Sanofi
20
<PAGE>
[Chesapeake Corporation logo]
Field Group Revenues and EBITDA Margin
- ------------------------------------------------------------------------------
($ Millions)
[Bar Chart showing Field Group Revenues as indicated in the following table]
<TABLE>
<CAPTION>
Description 1996 1997 1998 1999F
- ----------- ---- ---- ---- -----
<S> <C> <C> <C> <C>
Field Group Revenues 332 374 402 387
Revenue Growth +10% +13% +7% -3%
EBITDA Margin 16% 15% 16% 16%
</TABLE>
21
<PAGE>
[Chesapeake Corporation logo]
Displays & Merchandising Services
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[GRAPHIC] [GRAPHIC] . Leading POP supplier with sales of $250 million
. Growing global capability
. Market research and merchandising services
. Marketing oriented, not materials or manufacturing
based
. Turn key process
. Concept through distribution
22
<PAGE>
[Chesapeake Corporation logo]
Displays & Merchandising Services
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Major Customers
---------------
. Procter & Gamble . Cartier
. Hershey Foods . Lancome
. Duracell . Waterman
. Gillette . L'Oreal
. Johnson & Johnson/McNeil . Estee Lauder
. Colgate-Palmolive . Clinique
. Warner-Lambert . Paramount
23
<PAGE>
[Chesapeake Corporation logo]
Graphic Packaging
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[GRAPHIC]
. Largest litholam producer in U.S.A.
. Chesapeake's and Georgia-Pacific's graphic packaging businesses create a $200
million partnership
. Cash distributions split 58% to GP and 42% to CSK
. EBIT before synergies of $10 million
----------------
24
<PAGE>
[Chesapeake Corporation logo]
Summary
- --------------------------------------------------------------------------------
. Leadership positions in growing businesses with sustainable competitive
advantages
. Revenue growth from customer market sectors and expanding geography
. Relentless pursuit of cost reduction
. Healthy cash flow generation
. Management focused on building shareholder value
25
<PAGE>
[Chesapeake Corporation logo]
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Offer for
Boxmore
<PAGE>
[Chesapeake Corporation logo]
Boxmore
- --------------------------------------------------------------------------------
. Based in Belfast, Northern Ireland
. Leading supplier of primary packaging (cartons, labels, leaflets) for the
healthcare and pharmaceutical sectors in the UK & Ireland
. Other products include plastic containers (HDPE & PET) for the food, beverage
and agrichemical sectors
. Excellent fit for expanded European operations
27
<PAGE>
[Chesapeake Corporation logo]
Boxmore Sales
- --------------------------------------------------------------------------------
Pro-forma 1999 Sales Pro-forma 1999 EBIT
[Pie Chart showing sales breakdown (%) as indicated in the following table]
Customers
---------
Other 4% Merck
Food & Beverage 28% Hoechst
Chemical $ Industrial 13% Glaxo Wellcome
Pharmaceutical & Healthcare 55% 3M Health Care
Upjohn
$220 Million
Coca Cola
Zenaca
Novartis
28
<PAGE>
[CHESAPEAKE CORPORATION LOGO]
Boxmore Locations
- ------------------------------------------------------------------------------
[Map of Europe showing 16 locations; map of China showing one location; and map
of South Africa showing one location]
29
<PAGE>
[Chesapeake Corporation logo]
Boxmore Profitability
- --------------------------------------------------------------------------------
[Bar Chart showing Boxmore profitability ($ millions) and EBITDA margin for the
Years 1997-1999 as described in the following table]
Year 1997 1998 1999E
------ ---- ---- -----
EBIT $28 $23 $29
EBITDA $40 $36 $48
EBITDA Margin 24% 21% 21%
30
<PAGE>
[Chesapeake Corporation logo]
Revenue Enhancement/Cost Reduction Opportunities
- --------------------------------------------------------------------------------
. Cost Reductions
- Purchasing
. Paper
. Other materials
- S, G, & A
. Corporate HQ
. Selling $8M by Year 2
. Capacity Optimization Opportunities
- Pharmaceutical
. Technical Exchange
31
<PAGE>
[Chesapeake Corporation logo]
Offer For
Shorewood Packaging
32
<PAGE>
[Chesapeake Corporation logo]
Shorewood Packaging Corporation
- --------------------------------------------------------------------------------
. North America's largest non-integrated folding carton company
. Business focus on the tobacco, drinks, personal care and entertainment
markets
. Reputation for high quality and product innovation
33
<PAGE>
[Chesapeake Corporation logo]
Shorewood Sales
- --------------------------------------------------------------------------------
[Pie Charts showing sales by End Use and Geography]
<TABLE>
<CAPTION>
By End Use By Geography
Description % Description %
- ----------- -- ----------- --
<S> <C> <C> <C>
Music & Home Entertainment 33% United States 67%
Tobacco 34% Canada 32%
Consumer Products & Other 19% China 1%
Cosmetics & Toiletries 14%
Total: $620mm 1998 pro forma sales
</TABLE>
34
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[Chesapeake Corporation logo]
Shorewood's Principal Plant Locations
[map of United States and Canada showing 15 locations; map of China
showing one location]
- --------------------------------------------------------------------------------
3,800 employees: 2,600 in the U.S., 1,100 in Canada and 100 in China
- --------------------------------------------------------------------------------
(a) Map does not show 11 sales offices in North America, 2 in Canada and 1 in
China
35
<PAGE>
[Chesapeake Corporation logo]
Shorewood Packaging Profitability
- --------------------------------------------------------------------------------
[Bar chart showing Shorewood Packaging Profitability ($Millions) and EBITDA
Margin for the Years 1996 - 1999 as described in the following table]
<TABLE>
<CAPTION>
Year 1997 1998 1999 1999PF
- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C>
EBITDA ($Million) $ 66 $ 68 $ 85 $92
EBITDA Margin 16% 16% 15% 15%
</TABLE>
Source: Company reports and CSK estimates
36
<PAGE>
[Chesapeake Corporation logo]
CSK's Offer For Shorewood
- --------------------------------------------------------------------------------
Valuation Multiples
-------------------
Boxmore Shorewood Average
Acquisition Offer Offer
Transaction Value/LTM Multiple Multiple Multiple
- --------------------- -------- --------- -----------
Revenues 1.7 1.2 .9
EBITDA 8.0 8.0 6.7
EBIT 12.9 12.0 9.9
37
<PAGE>
[Chesapeake Corporation logo]
Revenue Enhancement/Cost Reduction Opportunities
------------------------------------------------------------------------------
. Cost Reductions
- Purchasing
. Paper
. Other materials
- S, G, & A
. Corporate HQ $20M by Year 2
. Selling
. Cross Marketing Opportunities
- Pharmaceutical
- Luxury packaging
- Tobacco
- Multi-media
. Technical Exchange
38
<PAGE>
[Chesapeake Corporation logo]
Shorewood Acquisition Impact to EPS
- --------------------------------------------------------------------------------
($ in millions, except per share data)
Year 1 Year 2
-------- --------
EBIT Before Synergies 80 86
Goodwill Amortization (11) (11)
Synergies 10 20
Incremental EBIT 79 95
Incremental Financing Costs 61 59
Profit Before Tax 18 36
Taxes 11 18
Net Income 7 18
Shares Outstanding 17.2 17.2
EPS Accretion/Dilution .41 1.05
39
<PAGE>
[Chesapeake Corporation logo]
Chesapeake Sector Revenues
- --------------------------------------------------------------------------------
[Pie Charts showing sectors served (%) as indicated in the following tables]
<TABLE>
<CAPTION>
Current CSK + Boxmore + Sherwood
Description % Description %
- ----------- --- ----------- ---
<S> <C> <C> <C>
Pharma-Personal Care 22% Pharma-Personal Care 25%
Cosmetics-Luxury-Spirits 21% Tobacco 18%
Food-Bev. 12% Cosmetics-Luxury-Spirits 16%
Tobacco 12% Technology-Multimedia 14%
Candy 10% Food-Bev. 9%
Recreation 6% Other 6%
Other 5% Candy 4%
Home-Garden 5% Recreation 2%
Technology-Multimedia 4% Home-Garden 2%
Paper-Packaging 2% Agrichemicals 2%
Clothing 1% Paper-Packaging 1%
Clothing 1%
$1.0 Billion $1.8 Billion
</TABLE>
40
<PAGE>
[Chesapeake Corporation logo]
Cheaspeake Locations (CSK+SWD+Boxmore)
[Maps of United States, Europe, China and Africa showing Chesapeake's,
Shorewood's and Boxmore's locations]
. Shorewood
. Chesapeake
. Boxmore
41
<PAGE>
[Chesapeake Corporation logo]
Capital Structure Flexibility
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Y/E Y/E Y/E 99
99 99 After After SWD &
($ in millions) Forecast Boxmore Boxmore Purchase
<S> <C> <C> <C>
Net Debt (30) 356 1,146
Deferred Taxes 237 237 237
Shareholder's Equity 584 584 584
--- ----- -----
Total Capital 791 1,117 1,967
Net Debt/Capital - 38% 66%
</TABLE>
42
<PAGE>
[Chesapeake Corporation logo]
Summary
- --------------------------------------------------------------------------------
. Highly focused pure-play specialty packaging and merchandising services
company
. Leadership positions in good businesses with sustainable competitive
advantages
. Revenue growth from high-growth markets and expanding geography
. Healthy cash flow generation
. Management focused on improving shareholder value
. Shorewood acquisition makes strategic and financial sense
43
<PAGE>
[Chesapeake Corporation logo]
defining the future
44
