Cascades has completed the sale of its 57.6% equity stake in Reno De Medici S.p.A., previously announced July 5, 2021, to a subsidiary of funds managed by subsidiaries of Apollo Global Management, Inc. for an all-cash price of €1.45 per share corresponding to a total cash consideration of approximately €315.3m.
The selling price represents a multiple of approximately 11x of the adjusted operating income before depreciation of Reno De Medici for the last 12 months as of June 30, 2021.
“This transaction will create long-term value for the company and our shareholders,” stated Mario Plourde, President and CEO. “Strategically, exiting our Boxboard Europe segment is aligned with our plan to focus on strengthening the competitive positioning of our core North American packaging and tissue papers business operations. To this end, proceeds from the divestiture will not only support ongoing strategic modernization initiatives and key projects but will also allow Cascades to strategically return capital to shareholders and proactively manage our debt profile.”