Reno De Medici exits the FBB business

Reno De Medici, a leading producer of coated recycled cartonboard, has signed a put option agreement with Bonaparte Holding SAS to sell 100% of RDM La Rochette, a French subsidiary operating in the segment of cartonboard for folding boxboard based on virgin fibres (FBB). With its manufacturing plant in La Rochette, France, 140 km from Lyons, the company has a theoretical capacity of 165,000 tons of virgin-fibre FBB of different grammages. In the year ended 31 December 2019 it reported sales of €111.9 million, an EBITDA of €5.8 million and a net loss of €6.7 million.

“By exiting from this segment, RDM Group will effectively unlock resources and managerial energies to increase its focus on the current growth and consolidation path,” commented Reno De Medici’s CEO Michele Bianchi. “Through the integration of the most recent acquisitions, Barcelona Cartonboard and Paprinsa, the closing of which is expected to take place in the coming weeks, we are working to strengthen our leadership in the WLC market.”

The binding contract is expected to be signed within the first half of 2021.

Reno De Medici posted consolidated net revenue of €679.5 million in 2020 (3.2% down on the €701.6 million of 2019), but with an EBITDA margin of 12.3% and a net profit that more than doubled to €33.6 million..