RDIF and EBRD invest over $100m in Cotton Way
Press release, 20.01.2014
Moscow, January 20, 2014 - The Russian Direct Investment Fund (RDIF) and the European Bank for Reconstruction and Development (EBRD) announce a joint investment in Cotton Way, Russia’s leading commercial laundry and textile management company.
RDIF and EBRD will together invest up to 3.6 billion rubles [c$109m], with each party contributing fifty percent. The funds will be used by Cotton Way to continue to invest in industry leading facilities by constructing high efficiency laundry factories in key regions of Russia to further strengthen its market position and diversify its customer base.
Cotton Way provides commercial laundry and textile rental services to both local and national state organizations, as well as corporate organizations, including Russian Railways, Russia’s Ministry of Defence, hospitals, fitness clubs and hotel chains including those constructed for the Games in Sochi in 2014. At the end of 2013 Cotton Way built the country’s largest commercial laundry plant at the Sochi Olympic site. The facility which was included in the venues construction program will ensure a smooth linen supply for the athletes’ village and other 2014 Olympic venues.
Kirill Dmitriev, CEO of RDIF, said:
“Cotton Way uses the latest technology to enable companies to achieve efficiency gains and savings on their textile costs. The company is also well placed to capitalize on the growing demand for textile renting in Russia which currently accounts for less than 10% of the overall textile care market in the country. Our investment will further enable Cotton Way to continue on its growth trajectory and improve the overall competitiveness of Russian businesses.”
Natasha Khanjenkova, the EBRD’s Managing Director for Russia, said:
"The support of RDIF and EBRD will enable Cotton Way to significantly improve corporate governance standards, transparency and efficiency. This project is fully consistent with the Bank's Sustainable Resource Initiative, which prioritises the efficient use of water, energy and other resources."
Alexander Utkin, CEO of Cotton Way, said:
“This is a really significant event for Cotton Way - not only a serious endorsement of our company, but, above all, a commitment to the development of the young and dynamic textile rental industry which our company is trying to build in Russia. This investment will help significantly improve the industrial productive capacity of Russian companies who use Cotton Ways’ services.”
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at www.rdif.ru
The EBRD, owned by 64 countries and two intergovernmental institutions, supports the development of market economies and democracies. Further information at www.ebrd.com
Cotton Way is the market leader for industrial laundry and textile rental services in Russia. The company has 12 manufacturing units and 30 warehouse complexes around the country. Its offices are located across cities in Russia that have a population over a million such as Moscow, St-Petersburg, Kazan, Nizhniy Novgorod, Novosibirsk and Omsk. The company employs over 2000 people. Cotton Way has the quality certification mark RAL-GZ 992/1. Further information at www.cotton-way.ru
Contacts for additional information:
Russian Direct Investment Fund
Director, Media Relations Department
М: +7 964 726 1773
Andrew Hayes/ Maria Ignatova/ Elena Kuza/ Charlie Barker
Tel +44 (0) 20 7796 4133