JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced that the New York City Franchise and Concession Review Committee (FCRC) voted yesterday unanimously to consent to the change in control to JCDecaux of CEMUSA, Inc., owner of CEMUSA NY LLC which holds the 20-year New York City Street Furniture Franchise Agreement. The agreement expires in June 2026.
The FCRC consists of four Mayoral appointees, the independently elected Comptroller and the five separately elected Borough Presidents.
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. Registration is required within 30 days after transmittal by DOT which is expected to occur promptly.
This decision paves the way for JCDecaux to close on, before the end of October, the acquisition of 100% of CEMUSA – an FCC Group subsidiary dedicated to outdoor advertising – based on an agreement signed in March 2014. With 57,000 advertising panels, CEMUSA generated revenues of €130 million in 2014.
Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said: “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. 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."