JCDecaux Acquires 25% of Russ Outdoor
JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today that it has agreed to acquire 25% of Russ Outdoor, the largest outdoor advertising company in Russia, pending the required anti-monopoly approvals. As part of the transaction, JCDecaux will contribute its Russian assets from BigBoard to Russ Outdoor.
With 2011 revenues of circa USD300 million, Russ Outdoor is the leader in Russian outdoor advertising market with more than 40,000 faces and 3,000 full-time employees. The company is present in 70 Russian cities with estimated cumulative population of 50 million. In 2011, the Company was acquired by a consortium of investors led by VTB Capital Private Equity.
Andrey Kostin, President and Chairman of the Management Board of VTB Bank, representing Russ Outdoor’s major shareholder VTB Capital Private Equity, said: “The agreement with JCDecaux represents a vote of confidence in the future of the Russian market and the example of establishing an international partnership which brings foreign know-how and direct investment in our country. JCDecaux is a successful international business and recognized brand. We welcome our new European partner and look forward to further development of our common enterprise.”
Jean-François Decaux, co-CEO of JCDecaux, said: “Russia is Europe’s second largest out-of-home advertising market, which has always represented strategic importance for JCDecaux. We are delighted to team up with strong Russian partners with whom we will be able to capitalize on the high growth potential of the industry. I am confident that with the help of JCDecaux, Russ Outdoor will be able to implement the global best practices and bring the latest innovations to Russian cities and transport authorities. I am looking forward to working together with the Company and its shareholder group.”
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