Central European Distribution Corp. (CEDC) said on Tuesday that it has decided not to pursue an acquisition of Nemiroff.
The net proceeds expected from the sale of the Polish distribution business, which were initially targeted as partial consideration for the acquisition of Nemiroff, are anticipated to be redeployed to maximize return on capital, increase fully diluted earnings per share and/or reduce financial leverage.
The company said that it will consider a potential share buyback and/or acceleration of the call option on the remaining equity stake in the Whitehall Group that it does not own. The company's decision as to the application of such proceeds, and the timing thereof, will be determined by the company, in its discretion, and will depend upon, among other things, the economic and market conditions and such other factors as the company considers appropriate.
CEDC is the largest producer of vodka in the world and Central and Eastern Europe's largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States, England, France and Japan.
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