Central European Distribution Corporation, the US-based company with extensive drinks distribution operations in Poland, has further extended its business there with the acquisition of Panta-Hurt, based near Warsaw.
CEDC will pay around $2.28 million (€1.94m) for the alcoholic drinks distributor, which reported sales of around $23.96 million in 2002. The deal will be the ninth acquisition in Poland since CEDC's initial public offering in 1998.
The transaction is subject to the completion of CEDC's due diligence and the signing of a definitive share purchase agreement. The acquisition is expected to close in the third quarter of 2003 and is expected to be immediately accretive to CEDC's earnings.
William Carey, president and CEO of CEDC, said: "Our ninth acquisition will solidify our position in the greater Warsaw area, which is one of the highest per capita income areas in Poland. We will continue our acquisition strategy in 2003 as we look for those alcohol distribution companies that fill market voids."
Carey continued: "We are pleased that the referendum to join the European Union (EU) was passed by Poland, which will join the EU on 1 May 2004. As a result, we expect to see the elimination of import duties on EU-sourced goods over the next year, which should have a positive impact on our results for 2004."
CEDC is one of the leading importers of beers, wines and spirits, as well as the largest distributor of domestic vodka on a nationwide basis in Poland. The company operates 55 regional distribution centres in major urban areas throughout Poland. It distributes many of the world's leading brands, including brands such as Johnnie Walker Scotch, Stock Brandy, Sutter Home, Torres, Mondavi and Concha y Toro wines, Corona, Beck's, Foster's, Budweiser Budvar and Guinness Stout beers.