CEDC Set to Buy Polish Distributor for $8 Million

Central European Distribution Corporation (CEDC), an eastern European distributor and importer of alcoholic beverages, has signed a binding preliminary share purchase agreement to acquire 100% of an unnamed Polish distributor of alcoholic beverages for $8 million.

CEDC said the transaction is subject to Polish anti-monopoly office approval and other closing conditions.

The purchase of the distributor, which has annual net sales of approximately $60 to $65 million, will be funded through a combination of approximately 80% cash and 20% in shares of common stock of CEDC. The company expects the transaction to close by mid-summer 2007.

CEDC is the largest vodka producer in Poland and produces the Absolwent, Zubrowka, Bols and Soplica brands. CEDC also produces and distributes Royal Vodka, the number one selling vodka in Hungary.