US investment fund Apollo Global Management has agreed to acquire a 67% ownership stake in Reno De Medici (RDM), an Italy-based manufacturer of recycled cartonboard, for a total of €365 million.
Apollo will acquire the controlling interest from its two principal shareholders, Cascades and Caisse de dépot et placement du Québec, for €1.45 per share.
Upon closing of the acquisition, Apollo will launch a mandatory tender offer for the remaining shares, with the aim to delist RDM.
RDM produces and distributes cardboard made from recycled fibres, which is mainly used for packaging and folding cartons in all product sectors including food.
The company recently purchased mills in Spain and entered into an agreement to buy mills in the Netherlands, which, upon closing, will see RDM’s operations grow to nine mills and five specialised cutting and sheeting centres across Europe and the US.
According to Apollo, RDM will continue to benefit from increasing shifts in consumer preferences and EU-wide regulations supporting the use of sustainable, recycled fibres.
“Already one of Europe’s top leaders in recycled cartonboard, RDM is well positioned for continued growth as more companies replace plastics with sustainable packaging,” said Marc Becker, senior partner and co-lead of Apollo Impact.
Michele Bianchi, CEO of RDM, added: “We are excited to work with Apollo through this next phase of growth for RDM. Over the last five years, our exceptional team has made significant progress in scaling our platform and optimising our operations across Europe.”
In a separate document, Cascades announced that it will divest its 57.6% equity stake in RDM for €315.3 million, which will see the Canadian company exit the European market and strengthen the position of its core North American packaging and tissue papers business operations.
Mario Plourde, president and CEO of Cascades, said: “Today’s announcement signals the end of our company’s successful 35-year operating history in Europe. While Cascades is turning a page to focus on North America, we are confident that the team at Apollo will be an ideal strategic partner to support RDM’s future growth.”
The transaction, which is subject to customary closing conditions, is expected to be completed in the third quarter of 2021.
© FoodBev Media Ltd 2022
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