Another surprise in outdoor advertising. Euromedia, leader of the market, has been purchased by the Austrian advertising group epa only two months after it had changed its owner. The value of the deal has not been disclosed.
Epa bought 85% in stock of Euromedia from the Romanian firm Plasty Prod of Constanta, whose participation has been reduced to 15%.
Plasty Prod came to own Euromedia in December, when it bought the company from the US investment fund Advent International. The value of the deal, which has not been made public by the two sides, was put at 17-18 million dollars (13-14 million euros).
The acquisition of Euromedia by Plasty Prod was considered as a big surprise at that moment, for at least two reasons. First, Plasty Prod is a producer of advertising material and not an outdoor advertising company. Second, several major European groups, including epa, had been interested in Euromedia.
Sources close to negotiations say that epa did not buy Euromedia at that time because it was in advanced talks to take over Beta Cons, another important player in the Romanian outdoor market. Since Beta Cons was no longer taken over, epa focused its attention on Euromedia.
"Plasty Prod chose a strategic partner. For the time being, there are no policy changes, but such changes are likely to emerge," says Florin Tuca, a sales manager with Euromedia.
A similar deal has been sealed before in the Romanian outdoor advertising. Two years ago, investment fund Oresa Ventures sold Churchill Media, the third largest player, to shareholders of Efect Media (ranked fourth or fifth on the market). After several months, they sold the company to another Romanian businessman.
The Austrian group says that, by acquiring Euromedia, its outdoor unit akzent has taken a further step in its Central and Eastern European expansion. In the wake of this takeover, the management of Euromedia has been entrusted to George Muhscina, replacing Adrian Draghici who is no longer part of the team. According to the Trade Registry, Muhscina owned 32.5% in Plasty Prod stock.
"The management change will entail a modern and professional entrepreneurial strategy directed toward customers' demands and tailored to the specific needs of local authorities," epa specified.
Euromedia has over 10,000 ads and in 2004 logged turnover worth 10 million euros (13 million dollars).
Outdoor akzent is the only Austrian advertising company with a relevant presence in Central and Eastern Europe.
The Austrian group carries operations in the Czech Republic, Slovakia, Slovenia, Hungary, Croatia, Serbia, Macedonia, Bulgaria and Poland.
laurentiu.ispir@businessmagazin.ro
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