JCDecaux NYC Street Furniture Advertising Network Expands to 3,500 Bus Shelters and 314 Newsstands
NEW YORK, NY — JCDecaux SA expects to complete its acquisition of CEMUSA before November based on an agreement signed in March 2014. The last stumbling block was cleared yesterday after a unanimous vote by the New York City Franchise and Concession Review Committee (FCRC) to change control of an existing agreement with CEMUSA for the New York City Street Furniture Franchise to JCDecaux.
The amended Franchise Agreement with New York City, acting through its Department of Transportation (DOT), will take effect once registered by the New York City Comptroller, who voted as a member of the FCRC to approve the takeover by JCDecaux. The FCRC consists of four Mayoral appointees, the independently elected Comptroller and the five separately elected Borough Presidents.Registration is required within 30 days after transmittal by DOT which is expected to occur promptly. The new Street Furniture Franchise agreement with JCDecaux expires in June 2026.
“We are very pleased and honored that the Mayor, the Comptroller and the five Borough Presidents all approved JCDecaux to become New York City’s street furniture partner, to operate 3,500 advertising bus shelters and 314 advertising newsstands,” said Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux. “The New York City street furniture contract will complement and strengthen JCDecaux’s street furniture advertising network throughout North America, which already includes Los Angeles, Chicago, San Francisco and Boston.”
CEMUSA, a subsidiary of an FCC Group, was started in 1984, and operates street furniture and transportation advertising managing more than 57,000 advertising panels in five countries that include the United States, Brazil, Spain, Portugal and Italy. The company generated revenues of €130 million ($145 million) in 2014. The transaction is part of a larger divestment plan aimed at reducing FCC’s debt, according to the company.
JCDecaux announced their intention to acquire CEMUSA in March 2014 for 80 million euros ($112,591,000). The closing of the transaction was subject to regulatory conditions and the final value of the transaction will be adjusted for standard net debt and debt like adjustments at closing. The acquisition expands JCDecaux’s presence in major cities that include New York, Rio de Janeiro, Brasilia, Madrid, Barcelona, Lisbon and Genoa, and across 41 Spanish airports, including those of Madrid and Barcelona.
Editor’s Update: JCDecaux competed the acquisition of CEMUSA on November 16, 2015. The acquisition will add more than 43,000 advertising panels in street furniture and transportation to JCDecaux’s portfolio, extending or reinforcing its presence in New York, Rio de Janeiro, Brasilia, Madrid and Barcelona and in 41 airports including those in Madrid and Barcelona. CEMUSA’s Portugal operations were not part of the acquisition.
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