Because the American Apollo fund devours Reno De Medici
The Apollo fund staked 365 million euros on Reno De Medici to acquire the majority stake. It intends to launch a takeover bid for the delisting of the stock from Piazza Affari. All the details
The American fund Apollo Global Management announced this morning the purchase through some funds managed by its affiliates of a majority stake in Reno De Medici (Rdm), an Italian company leader in Europe in the production of recycled-based cardboard.
In particular, the Apollo funds will purchase approximately 67% of the share capital of Reno De Medici (251,974,385 ordinary shares) from the two largest shareholders of the company, namely Cascades Inc. and Caisse de dépot et placement du Québec, at a price of 1 , 45 euros per share, ie with a premium of 24% compared to the weighted average price for the volumes traded in the last three months.
The value of the transaction, which is expected to be completed by the third quarter of 2021, amounts to over 365 million euros.
The operation is aimed at delisting the company Rdm from the Milan Stock Exchange, through the launch of a mandatory public tender offer (takeover bid) on the remaining shares.
RENO DE MEDICI: WHAT HE DOES, ACCOUNTS AND SHAREHOLDERS
The Rdm group deals at a European level with the production of coated recycled-based cardboard used mainly for packaging and folding cartons in all the main product sectors. It is the second producer in Europe, first in Italy, France and the Iberian Peninsula.
The group, based in Milan, is listed on the Star segment of Borsa Italiana SpA and on the Madrid Stock Exchange.
In addition to the headquarters in Milan, Rdm boasts a strategic presence at an international level thanks to its 6 production plants, 2 cutting centers and a commercial network active in 70 countries, for a total of 1,729 employees and 1,340,000 tons produced.
Turnover in 2020 amounted to 679 million euros, while in the 1st quarter of 2021 sales revenues amounted to 153 million euros compared to 151 in the same period of 2020, with a net profit of 4.9 million. euro (9.4 million at March 31, 2020).
RDM's shareholding is made up of 57.60% by Cascades Inc. and 9.10% by Caisse de dépot et placement du Québec while the free float is equal to 32.92% with 0.38% of treasury shares (updated March 2018).
APOLLO FUND: NUMBERS AND BUSINESSES, WHO ARE THE MAIN SHAREHOLDERS
Apollo is one of the largest alternative investment managers globally, serving many of the world's largest institutional investors: it manages investments worth $ 461 billion as of March 31, 2021 for hundreds of investors in a dozen countries.
The Apollo Fund has grown nearly sevenfold in the past 10 years, with the team reaching over 1,700 employees.
25% of investors are of the "Public Pension" type, 20% relate to finance and insurance companies, 19% to governments while geographically their activity is more concentrated in North America (60%) while for 17 % concerns Europe and 9% Asia.
Apollo, founded in 1990 by Marc Rowan and Josh Harris, focuses primarily on three business strategies: yield, hybrid and opportunistic holdings.
Thanks to a fully integrated platform, Apollo Impact launched in 2020, Apollo supports the retirement income and financial performance needs of clients, offering innovative capital solutions to businesses.
In particular, Apollo Impact aims to differentiate itself in the market by pursuing impact on a scale through opportunities in advanced stage companies, through five key areas: economic opportunities; instruction; health, safety and well-being; industry 4.0; climate and sustainability.
The Apollo fund closed the first three months of the year as of March 31, 2021 with a record profit of $ 2.81 per share and a commission income of $ 0.65 per share, up 26% compared to the same quarter of the year. 2020. Distribution of quarterly dividend of $ 0.50 per share announced.
HOW EVER APOLLO HAS DECIDED TO INVEST IN RENO DE MEDICI
The Apollo fund decided to invest in Reno De Medici not only because of its leadership in Europe in the recycled-based cardboard sector, but also because "RDM is well positioned for continuous growth, as more and more companies have decided to replace plastic with sustainable packaging ".
Marc Becker, Senior Partner and Co-Lead of Apollo Impact, said he was ready to “collaborate with Michele and the Company's management team in order to continue to grow the Company's business by pursuing an ever greater positive impact on the environment”.
“Rdm fully embraces our strategy of seeking viable companies in which we believe we can guide profitability and performance in order to increase the positive effects for society and for the planet”, concludes Becker.
Andrea Moneta, Senior Advisor of Apollo for Italy, adds "Rdm highlights the important role that Italy is playing in building a more sustainable global economy and Apollo's commitment to collaborate with the best Italian companies, entrepreneurs and managers, to support their long-term growth ".
DETAILS OF THE APOLLO – RENO DE MEDICI OPERATION
The purchase of the majority stake in Rdm by the Apollo Fund will pass through Rimini BidCo Srl, a newly established company controlled by the Apollo Funds, and by the two major shareholders of Rdm, namely Cascades Inc. and Caisse de dépot et placement du Québec.
In the event that the delisting should not be carried out at the end and due to the effect of the Mandatory Offer, the delisting may be carried out by merging Reno De Medici in Rimini or in another company controlled by the Apollo Funds.
Rimini will finance the operation, including any refinancing of Rdm's existing debt, through a combination of own funds and a bank loan for which a commitment has already been obtained for the whole by leading international banks ( fully committed debt financing).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-il-fondo-americano-apollo-divora-reno-de-medici/ on Mon, 05 Jul 2021 13:10:01 +0000.