Apollo Global Management, Inc. (NYSE: APO) disclosed Monday certain funds handled by its affiliates have inked a definitive agreement to purchase a majority stake in Reno De Medici S.p.A. (RDM). It has been disclosed that the firm has decided to acquire 67% equity ownership in RDM.
The firm has bought the stake from the top two shareholders of the firm. The two shareholders include Cascades Inc. and Caisse de dépot et placement du Québec for EUR 1.45 per share. It represents a 24% premium to the 90-day volume-weighted average share price. RDM has gain recognition as the number one manufacturer of coated recycled carton board in Italy, France, and the Iberian Peninsula.
Furthermore, the firm has made its reputation as the second-largest producer in Europe. RDM plays a central role in improving sustainable development and contributing to a circular economy by reducing waste, emissions, and raw material and water usage with 100% of products are made up of recycled materials.
Additionally, this year the RDM group bought mills in Spain, just closed last week. The firm has also reached an agreement to purchase mills in the Netherlands. It will bring its operations to nine mills and five specialized cutting and sheeting centers across Europe and the US.
The execution of the deal which is dependent on customary execution conditions is anticipated to happen by Q3 2021. Upon closure, Apollo will introduce a compulsory tender offer for the remaining shares, with the target to de-list the firm.