Toasted takeover

Central European Distribution Corporation (CEDC), a producer and distributor of alcoholic beverages, has bought a 100-percent stake in PHS - a Polish distributor of alcohol. "We are pleased to complete this acquisition of a strong distributor in Western Poland ... PHS will solidify our distribution presence in this key region of Poland," CEDC's president, William Carey, said. The value of the transaction amounted to $8.4 (zł.23.3) million. Of this amount 80 percent was paid in cash and the rest in CEDC stocks.

As a result of the transaction, CEDC raised its 2007 prognosis of revenue from sales to $1.13-1.18 (zł.3.13-3.27) billion from $1.1-1.13 (zł.3.05-3.13) billion. The 2008 prognosis was also increased from $1.2-1.3 (zł.3.11-3.13) billion to $1.26-1.36 (zł.3.5-3.77) billion. As the company underlines, the prognosis includes neither the acquisition of the Russian premium vodka brand Parliament - which CEDC bought in the beginning of July - nor other potential takeovers.

In Q2 2007 CEDC had a sales revenue of $269 (zł.747.36) million, which represented a 21-percent increase from the $222 (zł.616.7) million in Q2 2006. The company's net profit jumped by 42 percent year-on-year to reach $13.7 (zł.38.06) million in Q2 of this year.

"The continued strong growth of the Polish economy has continued to drive strong demand for our branded beverages," Carey said. CEDC, which is the largest vodka producer in Poland as well as the largest distributor of alcoholic beverages in Poland and in Hungary, is listed both on the WSE and the Nasdaq.