In accordance with its strategy, Cascades announces the monetization of its majority stake in Groupe RDM
CHUTES KINGSEY, QC, July 5, 2021 / PRNewswire / – Cascades Inc. (TSX: CAS) (the “Company”) is pleased to announce that it has entered into an agreement with an affiliate of funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) to sell its 57.6% stake in Reno De Medici SpA (BIT: RM) (“Reno de Medici” or “RDM”) for a cash price of € 1.45 per share, corresponding to a total net cash consideration of approximately € 315.3 million (approximately C $ 461 million). The purchase price is not subject to any adjustment, except in the event of potential losses in value for the seller (such as, among others, dividends or return of capital), provided that the 2020 RDM dividend which was paid to shareholders in May 2021 will not be considered a leak.
The sale price represents a 24% premium over the volume weighted average price of the RDM share over 90 days, and a multiple of 6.9x over RDM’s adjusted operating profit over the twelve last months before depreciation at March 31, 2021. Upon closing of the recently announced acquisition of the Eska group, the activities of the RDM group will expand to nine factories and five specialized cutting and laminating centers across Europe and the United States.
The transaction is expected to close 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 create long-term value for the Company and our shareholders,” said Mario plourde, President and CEO. “The timing of this divestiture allows Cascades to monetize the value generated by RDM’s multi-year transformation initiatives, which have contributed to the significant increase in Reno de Medici’s share price over the past year. Strategically, the exit from our Europe Boxboard segment is aligned with our To this end, the proceeds from the sale will support ongoing strategic modernization initiatives and key projects and will allow Cascades to strategically return capital to its shareholders and manage proactively our debt profile. “
“Today’s announcement marks the end of 35 years of successful operation of our company in Europe. As Cascades turns a page to focus on North America, we are confident that the Apollo team 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 the employees for the fruitful and positive partnership that we have maintained with them over these many years ”, declared Mr. Plourde in closing.
Rothschild & Co acted as financial advisor to Cascades in this transaction and Jones Day acted as legal counsel. Allen & Overy and Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisers for Apollo.
Cascades will hold a conference call on July 5, 2021at 9 a.m. ET to discuss this strategic transaction. The call is accessible by telephone: 1-888-664-6383 (toll free) / 1-416-764-8650 (international), or via the Company’s website: www.cascades.com/fr/investisseurs.
Founded in 1964, Cascades offers sustainable, innovative and value-added packaging, hygiene and recovery solutions. The company employs more than 11,700 women and men through a network of 85 establishments in North America and Europe. With its participatory management, half a century of experience in recycling and continuous research and development efforts, Cascades continues to offer innovative products that customers trust, while contributing to well-being. people, communities and the entire planet. . Cascades shares trade on the Toronto Stock Exchange under the symbol CAS.
SOURCE Cascades inc.