LONDON (Thomson Financial) - Lion Capital LLP, the London-based private
equity firm, said it has agreed to a joint acquisition of a majority stake in
the Russian Alcohol Group ("Russian Alcohol") from Industrial Investors in a
transaction, which, conditional upon regulatory approval, is expected to close
within sixty days.
Central European Distribution Corporation, a U.S.-listed vodka producer,
will also invest in Russian Alcohol alongside Lion Capital, as will Goldman
Sachs Group Inc.
Russian Alcohol is the largest producer of vodka and ready-to-drink
alcoholic beverages in Russia, Lion said. It employs about 3,500 employees
across five production facilities and Lion expects to generate net sales of over
$500 million in its current financial year.
William Carey, President and CEO of CEDC, said: "Should we realize full
ownership of the Russian Alcohol business, we expect that there will be
significant synergies across our businesses in Russia, which we believe should
create an enviable portfolio and market position."
Kirill Rubinski, First Vice President of Industrial Investors, said: "The
creation of Russian Alcohol and expansion to its current position as the leading
spirits company in Russia has been an exciting process and a very successful
investment for Industrial Investors and its shareholders."
In August 2007, Lion Capital agreed to acquire OAO Nidan Soki, a Russian
producer of branded juice.
Lion Capital was advised by Goldman Sachs, as well as Weil, Gotshal & Manges
and PricewaterhouseCoopers. Russian Alcohol was advised by ABN Amro and Hogan &
Hartson.
Alexander.Wessendorff@thomsonreuters.com
aw/ajb
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