CEDC interested in acquiring Nemiroff

2010-02-15

CEDC, one of the largest vodka producers and distributors in Poland and Russia, intends to take part in negotiations pertaining to the acquisition of Nemiroff, a leader on the Ukrainian vodka market. The brand is estimated to be worth around $300m.
In mid-2010, CEDC will also make decisions with regard to distribution. At present, the company’s wholesale activity generates only up to 30% of the CEDC’s total sales revenues as the core business of the group is production and import of strong alcohols, not distribution. Therefore, the group is considering establishing a separate entity which could be introduced on the stock exchange. The CEDC is also searching for an investor for its distribution division. The sale of the latter business is seen in a positive light as the group could use money from the sale to invest in production or to reduce its debts.