Cascades signed an agreement with a fund subsidiary to sell its 57.6% stake in Reno De Medici SpA for a total price of 1.45 euros per share, corresponding to a total net consideration of approximately 315.3 million euros.
“The return on our investment in RDM reflects our commitment to creating long-term value for the company and our shareholders,” said Mário Plourde, President and CEO. “The timing of this divestiture allows Cascades to monetize the value generated by RDM’s transformation initiatives, which helped drive the significant rise in Reno de Medici’s share price over the past year.
“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.”
“Today’s announcement signals the end of our Company’s successful 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. We would like to thank Michele Bianchi and the Reno management team as well as all of the employees for the successful and positive partnership we have enjoyed with them over these many years,” Mr. Plourde said in closing.
Following the recently announced acquisition of Eska Group, RDM Group’s operations will grow to nine mills and five specialized cutting centers across Europe and the U.S. The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions, including necessary merger control approvals.