Belvedere acquires Krakow distiller for zl. 16.4 million

Belvedere Dystrybucja has acquired a 77.6% stake in Krakow-based Destylarnia Polmos, a distillation facility, for zl. 16.4 million. "The transaction was completed through an increase in the company's capital," said Polmos head Marian Cwiertniak. The investor is planning to boost it's stake to over 85% for an additional zl. 12 million by the end of 2004. The rest of the shares will remain in the hands of the State Treasury. The management board of the Krakow distillery is currently counting on dynamic development thanks to the injection of capital, which will primarily be used for debt repayment. Under the signed contract, the investor is obliged to keep the current profile of the plant by maintaining production of the most important alcohol brands at least until the end of 2006, and ensure diversification of the product range by producing bio-ethanol in mid-2003, a product added to automotive fuels. Cwiertniak also emphasized that the investor will increase spending on marketing and distribution in Poland and abroad. (Prawo i Gospodarka, p. 4; Puls Biznesu, p. 5) A.K.