UK: Merrill Lynch initiates CEDC coverage
Merrill Lynch has initiated coverage of Central Eastern Distributing Corp. The financial management company said today (29 July) that it has begun its coverage of the drinks firm with an 'overweight' -70% recommendation.
"We expect the acquisitions of Bols and Bialystock to be approved, in-line with company guidance," Merrill Lynch said in a research report. "The proposed acquisition of Bols and Bialystock makes strategic sense, in our opinion. We believe CEDC can use its extensive distribution platform to extract synergies and deliver cash flow in order to both deleverage and grow its business.
"CEDC will continue to be acquisitive, in our opinion. We think, however, that there will be some breathing space whilst management integrates the Bols and Bialystock businesses.
"CEDC will need to balance the interests of its distribution customers with its desire to promote the Bols and Bialystock brands that it is acquiring in our view," the report added. "As we see it, contracts will be lost but that this will be more of a medium term phenomenon. Distribution customers will wait to see the effects of the Bols and Bialystock acquisitions on their brands, before switching contracts away from the only supplier with a national distribution platform, in our opinion."
Maxxium UK has confirmed that it will remain the distributor for the former Rémy Cointreau Dutch spirits business Bols....
ABN AMRO Capital, the private equity arm of Dutch bank ABN AMRO, and a former Rémy Cointreau executive have joined forces to buy the French group's Dutch spirits business....
French drinks giant Rémy Cointreau has put its Bols business up for sale....
Central European Distribution Corporation (CEDC) has finally completed its purchase of a majority stake in Polmos Bialystok....
Central European Distribution Corporation (CEDC) has been given the regulatory green light to purchase a majority stake in Polmos Bialystok....
Central European Distribution Corporation has completed its acquisition of Botapol Holding B.V., which owns 100% of the outstanding shares of Bols Sp. z o.o....
The US-based European drinks distributor, Central European Distribution Corporation (CEDC), posted net income for the second quarter of 2005 of US$5.6m, or US$0.33 per fully diluted share, up from US$...
The drinks distributor, Central European Distribution Company (CEDC), has announced that it has received approval from Poland's anti-monopoly regulator for its acquisition of Bols Sp. z o.o....
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