RDM’s recycled cardboard is used mainly for packaging and folding cartons in all the major product sectors
Apollo has agreed to acquire majority stake in cartonboard producer RDM. (Credit: bertholdbrodersen from Pixabay)
The funds managed by affiliates of Apollo Global Management have agreed to purchase a majority stake in European cartonboard producer Reno De Medici (RDM).
Apollo will purchase up to 67% equity interest in RDM from the firm’s two shareholders, Cascades and Caisse de dépot et placement du Québec, by paying €1.45 per share.
Cascades agreed to sell its 57.6% equity interest in RDM for an all-cash price of about €315.3m.
RDM is said to be the top producer of coated recycled cartonboard in Italy, France and the Iberian Peninsula, as well as the second-largest producer in Europe.
The company’s recycled cardboard is used mainly for packaging and folding cartons in all the major product sectors.
RDM produces 100% of products with recycled materials to help increase sustainability and boost the circular economy by minimising waste.
This year, the RDM group acquired mills in Spain and agreed to acquire mills in the Netherlands.
Upon closing the Netherlands deal, the company’s operations will consist of nine mills and five specialised cutting and sheeting centres across Europe and the US.
RDM Group CEO Michele Bianchi said: “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 optimizing our operations across Europe.
“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.”
Subject to customary closing conditions including required merger control approvals, the deal is expected to be completed in the third quarter of this year.
Rothschild & Co served as financial advisor to Cascades for the deal, while Jones Day acted as legal advisor. Latham & Watkins served as legal advisor for Caisse de dépot et placement du Québec.
Allen & Overy and Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisors for Apollo.