Consortium of investors, led by Russian Direct Investment Fund and CDC International Capital, announce investment in Arc, the world's leading manufacturer of tableware

Press release, 17.06.2016

Moscow, 17 June, 2016– Consortium of investors, led by the Russian Direct Investment Fund (RDIF) and CDC International Capital (CDC IC), a subsidiary of the French sovereign financial institution Caisse des Dépôts, enter in a preliminary agreement to invest up to EUR 250 million in Arc, the world's leading manufacturer of tableware. RDIF and CDC IC will invest in the project on a parity basis.

The proceeds will be used by Arc for the implementation of a global investment program, with significant capital invested in France and Russia. In France, this includes the modernization and strengthening of the company’s historical facilities in the North of France. In Russian capital program will include expansion of existing production facilities, as well as construction of a new state of the art glassware plant in Kaliningrad to provide better service and value to Russian customers and an attractive source of supply into Arc's global network.

Kaliningrad Region has committed to provide full support to the project, which will utilize new technologies, contribute to the import substitution strategy, promote export potential of the region and become pioneer in regional industrial zone development.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:

"We are pleased to announce the forthcoming first investment of the Russia-France investment platform. This investment is a great example of how the cooperation between the two funds is contributing to building and developing Russian-French business relations. It is important that part of the invested funds will be used for the construction of a modern plant in the Kaliningrad region, which has a number of advantages including a unique geographical location, developed infrastructure, high resource potential and special tax regime. Given that production costs are some of the lowest in the world, the project will be competitive in the global markets."

Laurent Vigier, CEO of CDСIC, said:

"We are very proud to move forward on this first transaction that clearly demonstrates the relevance of the partnership between RDIF and CDC IC. This deal is fully in line with the investment strategy we initially designed, as we support the development of a French leader in France, in Russia and worldwide. I am happy to welcome other partners who from the beginning believe in the strong potential of Arc and in the importance of the French-Russian partnership. "

Tim Gollin, President and CEO of Arc, said:

"This group of investors brings Arc local expertise in four of the five major regions where we produce tableware. This significant vote of confidence in our strategy and our growth initiatives will enable us to build capacity and improve efficiency in all our plants so that we can continue to deliver great products at affordable prices to all of our customers. "

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Russian Direct Investment Fund (RDIF)was established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

CDC International Capital is the investment arm of French Caisse des Dépôts Group dedicated to long term investments with sovereign wealth funds and large international institutional investors. CDC International Capital has developed a network of Middle Eastern, Russian, Asian and North American institutional partners and operates through various investment structures.

Russia-France Investment Platform- a joint mechanism for investment between the Russian Direct Investment Fund and CDC International Capital S.A. This initiative aims to identify and implement attractive projects that will intensify investment, trade and economic cooperation between Russia and France. Today, RFIF has a pipeline of more than 10 investment projects worth over EUR 1 billion, in sectors such as consumer goods, mechanical engineering, food production and agriculture, construction materials, tourism, retail and infrastructure.

Arc– worldwide tableware leader.  The Group, whose head office is located in Arques (North of France), armed with its know-how in glassware, developed globally and currently markets its complete tableware ranges to more than 160 countries with production and distribution site in five continents. The Group covers the Consumer Goods and Food Service markets through a portfolio of brands – Luminarc, the most known brand of the company (№1 dinnerware brand according to TNS Sofres, 2014), Arcoroc, Cristal d'Arques Paris, Arcopal and Chef & Sommelier.

The market share of Arc brands is over 30% in Russia. Arc has already the production site in Russia and operates Opitny Stekolny Zavod in Gus-Khrustalny of Vladimir region.

Starting 2018, Arc plans to produce glassware in sodo and opal glass in new modern plant in Kaliningrad. The new plant will be the only one producing opal tableware in the CIS countries and Eastern Europe, with a manufactured products capacity of 53,000 tons, of which 70 % will be sold locally. The new industrial project is expected to lead to the creation of 1,050 new jobs in the region.

For additional information contact:

Maria Medvedeva
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
E-mail: mm@rdif.ru

Andrew Hayes / Yulianna Vilkos
Hudson Sandler
Tel: +44 (0) 20 7796 4133

CDC International Capital
Sylvain Fort/Daphné Claude
Steele & Holt
Tel. +33 6 21 89 11 05

Arc
Karim ZOUANEB/Thomas VETTIER – GOA CONSEIL  
Tel: +33 6 74 34 12 87
E-mail: arc@goaconseil.com
Sandrine MIEZE, Arc
Corporate Communication Manager
Tel: +33 3 21 12 75 41
E-mail: sandrine.mieze@arc-intl.com

Arc in Russia
Olga Pavlikova
Tel: +79055034892
E-mail: olga.pavlikova-ext@arc-int.com