US/POLAND: CEDC completes Polish distribution unit sale
CEDC secures distribution sale
Central European Distribution Corporation has completed the sale of its Polish drinks distribution arm to wholesale distributor Eurocash for PLN400m (US$132.7m).
As part of the deal, Eurocash will distribute Central European Distribution Corp's (CEDC) own drinks brands and licensed brands in Poland for six years. Drinks to be handled by Eurocash represent up to 30% of CEDC's annual sales.
The terms of the six-year agreement include minimum stock levels, as well as details on pricing, discounting and promotions, CEDC said yesterday (2 August).
Proceeds from the sale of the distribution business will be used to pay off existing debt, CEDC added.
Group president and CEO, William Carey, said following the announcement of the sale in April that the deal was "part of our continuing strategy to concentrate our efforts on our portfolio of own brands and imported brands".
Last month, CEDC announced that it had pulled out of talks to buy Ukrainian vodka firm Nemiroff.
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