Reno de Medici has signed a binding agreement on the sale of its French board mill La Rochette to La Rochette Holding Sas, a company 100 per cent owned by Germany's investment and holding company Mutares.
According to RDM, the sale and purchase agreement was signed through the group subsidiary RDM Blendecques, following the "successful outcome of the employment law and trade union procedures provided by the French law."
The financial terms of the acquisition of RDM's 100 per cent interest in La Rochette remained the same as the one set in the put option agreement signed last February, RDM explained. This put the enterprise value at €28.8m plus an earnout equal to 25 per cent of Ebitda in excess of €7.2m in each of the financial years 2021, 2022 and 2023.
The closing of the transaction is expected for the end of July 2021. The transaction is subject to customary closing conditions and antitrust approvals.
RDM waits for capacity expansion permit for Paprinsa
With the sale of the La Rochette plant, RDM will exit the market for fresh fibre board and concentrate its activities on the production of recycled fibre based board. Part of this concentration process is based on the acquisition of Spain's white lined chipboard manufacturer Papelera del Principado (Paprinsa). A corresponding agreement was signed last autumn and the transaction already received green light by the competent authorities. However, some of the conditions were "still pending, particularly the authorisation to increase production capacity," RDM announced, explaining why the closing of the transaction was not completed by 31 March 2021, but was now expected to take place by 30 June 2021.