The stake is being bought from shareholders Cascades and Caisse de dépot et placement du Québec for €1.45 ($1.72) to a share, corresponding to a total cash consideration of around €315.3m ($374m).
Apollo Funds’ newly formed company Rimini BidCo and the two shareholders have entered separate definitive sale and purchase agreements.
RDM has a strong market presence in Italy, France and the Iberian Peninsula. The company recently acquired mills in Spain and agreed to acquire mills in the Netherlands.
Once these have been acquired, the company’s assets will include nine mills and five specialised cutting and sheeting centres across Europe and the US.
The acquisition is Apollo’s first investment from its Impact platform.
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Apollo Impact senior partner and co-lead Marc Becker said: “Already one of Europe’s top leaders in recycled cartonboard, RDM is well-positioned for continued growth as more companies replace plastics with sustainable packaging.
“We view RDM as a proven platform for inorganic growth and look forward to working with Michele and the management team as they scale the business for greater positive environmental impact.
“As the inaugural investment led by the Apollo Impact platform, RDM reflects our strategy to find good businesses where we believe we can drive financial and impact performance to increase their beneficial effects on society and the planet.”
The deal is expected to close in the third quarter of the year subject to customary closing conditions.
Allen and Overy and Paul, Weiss, Rifkind, Wharton and Garrison served as Apollo’s legal advisers for the transaction.
Jones Day acted as legal advisers for Cascade while Rothschild and Co acted as the company’s financial adviser.
Latham and Watkins acted as legal advisers for Caisse de dépot et placement du Québec.