RDIF and CDC IC receive official support from the representatives of the French government to invest in Arc, world's leading glassware manufacturer
Press release, 27.06.2016
Arques, 27 June, 2016– The agreement by a 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, to invest up to EUR 250 million in Arc has received official support from the representatives of the French government. The corresponding agreement was signed on 17 June 2016 at the St. Petersburg International Economic Forum (SPIEF). Investors in the project first declared their intentions to participate in the deal during the meeting with Russian President Vladimir Putin at SPIEF. The project will be the first investment of the Russia-France investment platform.
An official ceremony to mark this occasion took place at the Arc headquarters in Arques,Northern France. The ceremony was attended by the Minister of Economy, Industry and Digital Technologies of France Emmanuel Macron, CEO of RDIF Kirill Dmitriev, Ambassador Extraordinary and Plenipotentiary of the Russian Federation in the Republic of France Alexander Orlov, CEO of CDC IC Laurent Vigier, President and CEO of Arc Tim Gollin, as well as representatives of business community, government and public officials from both countries. The delegation also visited the company’s flagship factory, one of the largest and most modern glassware plants in the world.
The deal terms envisage that RDIF and CDC IC will invest in the project on a parity basis, with a total investment of up to EUR 250 million. The proceeds will be used by Arc to implement its global investment program to accelerate its growth, including the modernization of its facilities in France, expansion of its existing production facilities in Russia and construction of a new state-of-the-art glassware plant in Kaliningrad.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"This transaction is an example of an effective cooperation in the financial and industrial sectors between the partners from Russia and France. We are grateful to Minister Macron for his support of the Russian-French investment platform in general and this transaction in particular. The construction of a new unique production complex in Kaliningrad, incorporating the most innovative technological solutions, will enable Arc to become the most efficient glassware producer in the world, supplying both Russian and European markets."
Laurent Vigier, CEO of CDC IC,said:
"CDC IC and RDIF invest together in Arc for the development of the company in France, in Russia and abroad. Today’s visit of the French Minister of Economy, Emmanuel Macron demonstrates the strong support of the government for our partnership and highlights its importance for the future of a French industrial leader."
Tim Gollin, Arc's president and CEO, said:
"Last month, in addition to announcing we had started production of fine unleaded crystal glass in France, we launched 450 new products. We are delighted with the very positive customer reaction, and this investment with the strong support of both Russian and French governments will help 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 and respond to the overwhelming market demand."
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.
Arc– employs 10,160 people worldwide, including 5,260 in France. The Group, whose head office is located in Arques, in the French “Hauts de France” region, achieved gross sales of €849 million in 2015. Armed with its know-how in glassware, it developed globally and currently markets its complete tableware ranges to more than 160 countries. The Group covers the Consumer Goods and Food Service markets through a portfolio of brands – Luminarc®, Arcoroc®, Arcopal®, Cristal d'Arques® Paris, Chef & Sommelier®.
The market share of Arc brands is over 30% in Russia. Arc already operates a production site in Russia, the Opitny Stekolny Zavod factory in Gus-Khrustalny, in the Vladimir region. Starting in 2018, Arc plans to produce glassware in sodolime and opal glass ina 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:
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
Andrew Hayes / Yulianna Vilkos
Tel: +44 (0) 20 7796 4133
CDC International Capital
Sylvain Fort/Daphné Claude
Steele & Holt
Tel. +33 6 21 89 11 05
Karim Zouaneb / Thomas Vettier – GOA CONSEIL
Tel: +33 6 74 34 12 87
Sandrine Mieze, Arc
Corporate Communication Manager
Tel: +33 3 21 12 75 41
Arc in Russia