Certain funds managed by affiliates of Apollo Global Management are to acquire a majority stake in Reno De Medici SpA (RDM), a leading producer of recycled cartonboard in Europe.
Apollo Funds will acquire approximately 67 per cent equity ownership in RDM from the Company’s top two shareholders, Cascades Inc. (TSX: CAS) and Caisse de dépot et placement du Québec for EUR1.45 per share (with no adjustments, save as further detailed below), representing a 24 per cent premium to the 90-day volume weighted average share price. The closing of the transaction, which is subject to customary closing conditions as further detailed below, is expected to take place by Q3 2021. Upon closing, Apollo will launch a mandatory tender offer for the remaining shares, with the aim to de-list the Company.
RDM is the number one producer of coated recycled cartonboard in Italy, France and the Iberian Peninsula, and the second-largest producer in Europe. With 100 per cent of products composed of recycled materials, RDM plays a central role in increasing sustainability and contributing to a circular economy by minimising waste, emissions, and raw material and water usage. This year the RDM group acquired mills in Spain, just closed last week, and agreed to acquire mills in the Netherlands which, upon closing, will bring its operations to nine mills and five specialised cutting and sheeting centres across Europe and the US. Apollo expects that RDM group will continue to benefit from increasing shifts in consumer preferences and EU-wide regulations supporting the use of sustainable, recycled fibers.
“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. We view RDM as a proven platform for inorganic growth and look forward to working with Michele and the management team as they scale the business for greater positive environmental impact,” says Marc Becker, Senior Partner and Co-Lead of Apollo Impact. “As the inaugural investment led by the Apollo Impact platform, RDM reflects our strategy to find good businesses where we believe we can drive financial and impact performance to increase their beneficial effects on society and the planet.”
“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,” said Michele Bianchi, CEO of RDM group. “Looking ahead, we are equally excited about Apollo’s shared commitment to the circular economy of which we are both contributors and beneficiaries. We look forward to building on our ambitious sustainability goals to shape a better future for all our stakeholders.”
Andrea Moneta, Apollo’s Senior Advisor for Italy, adds: “RDM underscores the important role Italy is playing in building a more sustainable global economy, and Apollo’s commitment to working with best-in-class Italian corporates, entrepreneurs, and management teams to support their long-term growth.”
