Alternative investment manager Apollo Global Management’s impact investing platform, Apollo Impact, announced today an agreement for the acquisition of European recycled cartonboard producer Reno De Medici S.p.A. (RDM).
Under the terms of the deal, Apollo will initially acquire the 67% stake in RDM held by majority shareholders Cascades Inc. and Caisse de dépot et placement du Québec for €1.45 per share, valuing the company at a market cap of €545 million (US$647 million). Upon closing of the transaction, expected by Q3 2021, Apollo will launch a mandatory tender offer for the remaining shares.
According to Apollo, the company expects RDM to benefit from increasing shifts in consumer preferences and EU-wide regulations supporting the use of sustainable, recycled fibers, with cartonboard increasingly used as an alternative to plastic packaging. 100% of RDM’s products are composed of recycled materials, positioning RDM to play a central role in increasing sustainability and contributing to a circular economy by minimizing waste, emissions, and raw material and water usage.
RDM has been actively expanding its business, including recently closing the acquisition of mills in Spain, and announcing the acquisition of mills in the Netherlands, which will bring its operations to nine mills and five specialized cutting and sheeting centers across Europe and the US.
Michele Bianchi, CEO of RDM group, said:
“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. Looking ahead, we are equally excited about Apollo’s shared commitment to the circular economy of which we are both contributors and beneficiaries. We look forward to building on our ambitious sustainability goals to shape a better future for all our stakeholders.”
The deal marks the first transaction for Apollo’s impact platform. The company announced the launch of Apollo Impact in September 2020, with a goal to focus on the key areas of economic opportunity, education, health, safety & wellness, industry 4.0, and resource sustainability.
Marc Becker, Senior Partner and Co-Lead of Apollo Impact, said:
“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.”