|Central European Distribution Corporation today announced that is has closed the sale of 100% of its wholesale business in Poland to Eurocash SA for a purchase price of 400 million PLN in cash, on a debt free, cash free basis, subject to potential price adjustments (to be finalized within two weeks from closing). The Company intends to use the proceeds from this sale to pay down existing debt. As previously announced the Company has also executed a six year agreement with Eurocash for the distribution of CEDC's portfolio of own brands and exclusive import brands in Poland. The distribution agreement contains key provisions such as minimum inventory levels, commercial terms including pricing and discounts, and other promotional programs.|
The subject of the transaction includes the sale of the fourteen companies which comprise the Company's wholesale business: Astor, Dako-Galant, Damianex, Delikates, Miro, MTC, Multi-Ex, Onufry, Panta-Hurt, PHA, Premium Distributors, Agis, PHS, and Saol.
CEDC is the largest producer of vodka in the world and Central and Eastern Europe's largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States, England, France and Japan.
CEDC also is a leading importer of alcoholic beverages in Poland, Russia and Hungary. In Poland, CEDC imports many of the world's leading brands, including brands such as Carlo Rossi Wines, Concha y Toro wines, Metaxa Liqueur, Remy Martin Cognac, Guinness, Sutter Home wines, Grant's Whisky, Jagermeister, E&J Gallo, Jim Beam Bourbon, Sierra Tequila, Teacher's Whisky, Campari, Cinzano, Skyy Vodka and Old Smuggler. CEDC is also a leading importer of premium spirits and wines in Russia with such brands as Hennessey, Moet & Chandon and Concha y Toro, among others.
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements are based on our knowledge of facts as of the date hereof and involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of CEDC to be materially different from any future results, performance or achievements expressed or implied by our forward looking statements.
Investors are cautioned that forward looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. CEDC undertakes no obligation to publicly update or revise any forward looking statements or to make any other forward looking statements, whether as a result of new information, future events or otherwise, unless required to do so by securities laws. Investors are referred to the full discussion of risks and uncertainties included in CEDC's Form 10-K for the fiscal year ended December 31, 2009, including statements made under the captions "Item 1A. Risks Relating to Our Business" and in other documents filed by CEDC with the Securities and Exchange Commission.