RUSSIA: Russian Standard confirms CEDC takeover, eyes exports boost
Russian Standard has finally taken over CEDC
Russian Standard has promised to increase exports of Central European Distribution Corporation (CEDC) vodka brands after completing the takeover of its debt-laden former rival.
Russian Standard confirmed late yesterday (5 June) that it has taken sole control of CEDC, which filed for bankruptcy in April. The deal hands Russian Standard brands including Russia’s Green Mark and Parliament and Poland's Zubrówka and Absolwent.
“With this acquisition we have fully invested in CEDC’s brands, in their history and in the people who make them,” Russian Standard owner Roustam Tariko said. “We have greater potential as one company, with complementary brands, segments, import portfolios and export markets.”
Russian Standard said it plans to “significantly increase the export” of its new brands, capitalising on rising demand for “authentic spirits”.
The takeover is part of CEDC's restructuring plan put in to effect after debts incurred from the acquisition of Russian vodka brands in 2008 forced it into bankruptcy.
The company has also cancelled its shares on the Warsaw Stock Exchange and handed all outstanding stock to Tariko's Roust Trading, which owns Russian Standard.
CEDC said the move "marks the culmination of more than a year's worth of work to bolster its financial structure and create a long-term business alliance" with Russian Standard. The restructuring plan aims to cut CEDC's debt by US$665.2m.
A CEDC spokesperson told just-drinks it is no longer a listed company, but will continue to operate under its own name as a subsidiary of Russian Standard.
Companies: Central European Distribution Corporation
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