Cascades Inc., Kingsey Falls, Quebec, has completed the sale of its 57.6 percent equity stake in Milan-based Reno De Medici S.p.A. The company is a large European producer of coated recycled cartonboard.
Cascades sold its stake to a subsidiary of funds managed by subsidiaries of Apollo Global Management Inc. for an all-cash price of 1.45 euros per share corresponding to a total cash consideration of about 315.3 million euros (approximately CAN$461 million before transaction-related fees).
“This transaction will create long-term value for the company and our shareholders,” says Mario Plourde, president and CEO of Cascades. “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.”
Rothschild & Co. served as a financial advisor to Cascades in this transaction and Jones Day served as a legal advisor. Allen & Overy and Paul, Weiss, Rifkind, Wharton & Garrison acted as legal advisors for Apollo.