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  • Apollo Impact to acquire a majority stake in RDM Group, Cascades inc. (CAS) Europe’s leading producer of recycled carton board
  • The closing of the transaction 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
  • 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 specialized cutting and sheeting centers across Europe and the US
  • Cascades Inc. (CAS) is up 5.61 per cent and is trading at C$15.99 at 3:29 pm ET

Apollo Global Management will acquire a majority stake in Reno De Medici S.p.A. (BIT: RM/BME: RDM), Europe’s leading producer of recycled carton board.

Apollo Funds will acquire approximately 67 per cent equity ownership in RDM from the company’s top two shareholders, Cascades Inc. (CAS) and Caisse de dépot et placement du Québec for EUR 1.45 per share.

The closing of the transaction, subject to customary closing conditions, 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 leading producer of coated recycled carton board in Italy, France and the Iberian Peninsula, and the second-largest producer in Europe.

With 100 per cent of its products composed of recycled materials, RDM plays a central role in increasing sustainability and contributing to a circular economy by minimizing 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 specialized cutting and sheeting centers 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 fibres.

“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,” said 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 optimizing our operations across Europe,” said Michele Bianchi, CEO of RDM group.

Andrea Moneta, Apollo’s Senior Advisor for Italy, added,

“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.”

Rimini BidCo S.r.l., a newly-formed company owned by the Apollo Funds, and RDM’s two top shareholders, Cascades Inc. and Caisse de dépot et placement du Québec, have entered into a separate definitive sale and purchase agreements which provide for the purchase by Rimini of a total of 251,974,385 RDM ordinary shares, corresponding to approximately 67 per cent of its corporate capital, at a price of EUR 1.45 per share.

Such price will not be subject to adjustments, save only in case of potential leakages of value, provided that RDM’s 2020 dividend that was paid to the shareholders in May 2021 will not be considered a leakage.

Cascades Inc. (CAS) is up 5.61 per cent and is trading at C$15.99 at 3:29 pm ET.

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