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RDM to acquire Cascades cardonboard mill in France

Photo: Cascades
Photo: Cascades
Published by
Simon Matthis - 17 Mar 2016

Reno De Medici S.p.A. has signed a Memorandum of Understanding to purchase, even indirectly, the entire share capital of Cascades S.A.S., presently owned by Cascades Inc., the Canadian company that, indirectly via Cascades S.A.S., controls 57.6% of its own share capital.

Cascades S.A.S, located in La Rochette, France, operates in the virgin-fiber cartonboard business. It boasts a total annual production capacity of 165,000 tons, with two board machines.

The purchase price, ranging between Euro 16 and Euro 20 million, will be finalized after the due diligence and the contract negotiations will have been completed and once the interest in the RDM share capital will be transferred to Cascades Inc.

Reno De Medici will fund the Cascades S.A.S. purchase through its banking facilities.

The acquisition of Cascades S.A.S. provides Reno De Medici with the opportunity of playing a direct role in a complementary business – the virgin-fiber cartonboard – that presents high-value users in the food and pharmaceutical industry.

Reno De Medici is already present in France, through the mill it owns in Blendecques. RDM Group will therefore buy Cascades S.A.S. through the 100% owned company, RDM Blendecques S.A.S.