Italy's recycled board manufacturer Reno de Medici to add 165,000 tpy in GC board capacity through La Rochette acquisition.
Recycling board manufacturer Reno de Medici Spa (RDM) announced it has signed a memorandum of understanding with Cascades Inc to acquire the entire share capital of Cascades Sas. Cascades Sas runs one virgin fibre board mill in La Rochette, France. The mill houses two board machines with an installed capacity of 165,000 tpy of GC board.
According to RDM, the acquisition of Cascades Sas is a related-party transaction. Canadian group Cascades Inc is the largest shareholder of RDM: indirectly via Cascades Sas the company controls 57.6% of RDM share capital. RDM puts the total consideration for Cascades Sas at €16-20m. The final purchase price will be defined following a due dilligence and the finalisation of sales negotiations. RDM will acquire Cascades Sas through its French subsidiary RDM Blendecques, which operates one recycled board mill with a capacity of 110,000 tpy.
With an installed capacity of 865,000 tpy Reno de Medici is the second largest manufacturer of white lined chipboard (WLC) in Europe. The acquisition of the La Rochette virgin fibre board mill “provides the company with the opportunity of playing a direct role in a complementary business [...] that presents high-value users in the food and pharmaceutical industry,” the company explained.