|JCDecaux And The RCS Rizzoli Corriere Della Sera Group|
To Combine Italian Outdoor Advertising Activities To Become The Lead Company In Italy
Paris – 27th June 2001 – JCDecaux SA (Euronext: DEC) and the press group RCS Rizzoli Corriere della Sera announced today that they have reached a partnership agreement with regard to the integration of their outdoor advertising activities in Italy, represented by JCDecaux Comunicazione Esterna Italia S.p.A. and IGP S.p.A.
IGP, a joint holding of RCS and the du Chène de Vère family, is the lead company in outdoor advertising in Italy with the no. 1 position in transport advertising (main contracts: Milan airports, buses in the largest cities in Italy, Milan metro) and a signi-ficant presence in street furniture (Milan) and large format display.
JCDecaux has just won the tender competition for street furniture for the city of Turin and is also active in Italy in the large format display and transport advertising sec-tors (Rome metro).
It is agreed by the parties that all outdoor advertising activities, including new ten-ders, will now be processed through the partnership.
The new company, IGP–Decaux, will be the no. 1 in outdoor advertising in Italy with 60,000 advertising faces in more than 200 cities, and an approximate 18% share of the market in 2000. The proforma turnover figure in 2000 for the IGP and JCDecaux Comunicazione Esterna Italia companies rose to 130 million Euros (i.e. 252 billion Lire).
According to the terms of the agreement the JCDecaux Group will have a holding of 33.33 % on signature and can increase its share progressively to 49 % over the course of the next three years.
Commenting on this new partnership, Jean-Charles Decaux, Co-CEO of the JCDecaux Group and future Vice President of IGP-Decaux said:
“The partnership which we have concluded with the RCS Rizzoli Corriere della Sera Group will enable JCDecaux to take the indisputable lead in the Italian outdoor mar-ket. We are delighted with this strategic alliance with two highly regarded partners, the RCS Rizzoli Corriere della Sera Group, the leading Italian press group, and the du Chène de Vère family whose reputation for excellence has been acknowledged by its advertising customers and by cities in Italy for more than a century.
With our new partners it is our ambition to reinforce the position of IGP-Decaux in Italy, a market which is still fragmented and which offers considerable development potential. As a consequence we shall shortly be in a position to offer our advertising customers integrated advertising networks in the metros and on the buses in Rome and Milan, and to reinforce our leading worldwide position in airport advertising with the addition of the two Milan airports located at Malpensa and Linate.
This partnership marks a new stage in the rapid consolidation of the outdoor adver-tising market in Europe, in which we shall continue to actively participate, thanks to our recent IPO. This agreement is a clear reflection of our development strategy and reinforces our leading position in Europe”.
Commenting on this new partnership, Flavio Biondi, the Director General of RCS advertising and the future President of IGP–Decaux said:
“The RCS Group, the no. 1 press group in Italy, confirms through this agreement with the JCDecaux Group its desire for growth in the outdoor advertising market. This agreement reinforces its recently acquired leadership arising from its participa-tion with the IGP Company S.p.A.
The objective of the new organisation arising from the partnership agreement bet-ween IGP and JCDecaux Comunicazione Esterna Italia is to achieve a high degree of development in the outdoor advertising sector in Italy, where it already has a pre-sence in more than 200 cities and in the areas of billboards, street furniture and transport advertising.
These leading partners in Italy and the world, both in their size and commitment to quality shall be, for RCS, the best guarantee of success”.
Commenting on this new partnership, Fabrizio du Chène de Vère, the Managing Director of IGP and future Managing Director of IGP–Decaux said:
“I am happy to announce in conjunction with Flavio Biondi and Jean-Charles Decaux this alliance which establishes the creation of IGP–Decaux. At this time, my thoughts go to my father and grandfather who created IGP and who taught me this marvellous profession.
I am grateful to RCS and to the Decaux family for the confidence they have entrus-ted in me and hope to make IGP–Decaux one of the finest and largest of compa-nies, which I shall do with the aid in particular of my brother, Emili Perona, Robert Telloli and Luciano Montagna who will manage with me the transport, street furnitu-re and billboard activities.
Today we have consolidated our lead position in the Italian market: our objective is continued growth and to gain further share in the market”.
Completion of the agreement shall be subject to receiving the necessary authorisa-tion from the competition authorities.
The Key Numbers for the JCDecaux Group:
The Key Numbers for the RCS Rizzoli Corriere della Sera Group:
Cecile Prevot, JCDecaux
Tim Spratt/Charlie Palmer, Financial Dynamics