Coated Paperboard from Recovered Fibres

Reno De Medici between Acquisitions and International Divestments

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On 14th March, Reno De Medici signed a letter of intent to acquire, even indirectly, the entire share capital of Cascades S.A.S., a company currently fully owned by Cascades Inc., the Canadian group that controls 57.6% of Reno De Medici’s share capital through Cascades S.A.S.. Based in La Rochette (140 km. east of Lyon in France), Cascades S.A.S. manufactures coated paperboard from virgin fibres. The company boasts a total annual manufacturing capacity of 165,000 tons and has two plants. In 2015, its EBITDA amounted to around 4 million euros, with about 50% of sales in the French market. Cascades is the only manufacturer of paperboard from virgin fibres in southern Europe. The cost of the acquisition, between 16 and 20 million euros, will be defined once due diligence and contractual negotiations are completed and will be subject to the transfer by Cascades Inc. of its shareholding in Reno De Medici’s share capital. As well as being approved by Reno De Medici’s Board of Directors, the acquisition will have to have the favourable opinion of its Committee on Related Party Transactions. The Committee has appointed Unicredit Corporate Finance Advisory as its advisor. Reno De Medici will finance the acquisition of Cascades S.A.S. with bank loans that are already available. Thanks to this acquisition, Reno De Medici will be able to play a direct role in a complementary business, i.e., that of paperboard from virgin fibres, that offers greater added value to the food and pharmaceutical sectors. Through Reno De Medici Blendecques S.A.S. (in the northern party of the country), Reno De Medici is already working in France . The Reno De Medici Group will therefore acquire Cascades S.A.S. through Reno De Medici Blendecques S.A.S., a company it has full control over.

A 17% Share in EmmausPack S.r.l has been sold

On 14th March 2016 too, Reno De Medici sold a 17% share in EmmausPack S.r.l. to the Oldani Family (Stefano and Andrea Oldani bought the bare ownership whereas Angelo Oldani acquired the beneficial interest). The sale will reduce RDM’s shareholding in the cut and distribution company from 51% to 34% of the total share capital. With this transaction, the Oldani family will increase its shareholding in EmmausPack S.r.l. from 49% to 66%. The purchase price has been set to 700,000 euros. The book value of RDM’s shareholding in EmmausPack S.r.l. amounts to 108,456 euros. On 31st December 2015, the affiliate’s net debt amounted to 2.3 million euros. Reno De Medici will therefore enjoy capital gain on the sale and a reduction of its own consolidated net debt of around 3 million euros.

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