CDC IC, Russian Direct Investment back Arc with €250m

The consortium of investors led by CDC IC and RDIF also included Bahrain Mumtalakat – a group mandated to grow the wealth of Bahrain through long-term investments and currently holding stakes in around 40 businesses. Two other sovereign funds also invested in the round, according to sources close to the deal. 

According to a statement by the GPs, a first drawdown of €50m has been completed. US investment firm PHP, which had become the majority shareholder in 2015, remains invested in the group.

Proceeds from the deal will be used by Arc to implement a global investment programme, including the expansion of existing production facilities in Russia and the construction of a new glassware plant in Kaliningrad with a capacity of 53,000 tonnes. An estimated 70% of the plant's production will be sold locally. The industrial project should also lead to the creation of 1,050 new jobs in the region. As a result of a company restructuring last year, 110 Arc employees lost their job.

Arc already owns a production site in Russia, named Opitny Stekolny Zavod, in the town of Gus-Khrustalny in the Vladimir region. Arc plans to start producing glassware in soda-lime and opal glass in the new factory from 2018 onwards.

The transaction marks the first investment made through the Russian-French investment platform, which aims to support companies with a global outreach in their international development, especially into the Russian market.

Based in Moscow, RDIF was established in 2011 to make equity co-investments, primarily in Russia, alongside other international financial and strategic investors. CDC IC often makes co-investments with sovereign wealth funds and large institutional investors.

Company
Created in 1825 and based in Arques in France's Hauts-de-France region, Arc is specialised in the production of glass tableware. The group covers the consumer goods and food service markets through a portfolio of brands – Luminarc, Arcoroc, Arcopal, Cristal d'Arques Paris and Chef & Sommelier. It has production plants in the US, China, the United Arab Emirates and Russia, and services customers in 160 countries.

Arc currently employs 10,160 people worldwide, including 5,260 in France, and achieved gross sales of €849m in 2015.

People
Russian Direct Investment Fund – Konstantin Ryzhkov (deputy CEO).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Expansion
• France
• Consumer
• France
• Retail & consumer