Cascades Inc. has entered into an agreement with Apollo Global Management, Inc. to sell its 57.6% equity interest in Reno De Medici S.p.A. for an all-cash price of €1.45 per share, corresponding to a total net cash consideration of approximately €315.3m.
The transaction is expected to be completed in the third quarter of 2021 and is subject to customary closing conditions, including required merger control approvals.
“The monetization of our RDM investment reflects our commitment to creating long-term value for the Company and our shareholders” stated Mario Plourde, President and Chief Executive Officer. “The timing of this divestiture allows Cascades to monetize the value generated by RDM’s multi-year transformation initiatives, which have helped drive the significant increase in Reno de Medici’s share price over the past year. 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 support ongoing strategic modernization initiatives and key projects and allow Cascades to strategically return capital to shareholders and proactively manage our debt profile.”
Plourde concludes, “This announcement signals the end of our company’s 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.”