Bala Cynwyd, Pa., July 30 - Central European Distribution Corporation today announced that it has signed a Share Purchase Agreement to acquire 100% of the outstanding shares of PHS Sp. z o.o., a leading Polish distributor of alcoholic beverages.
The total purchase price of approximately 8.4 million U.S. dollars will be funded through a combination of 80% cash and 20% shares of common stock of CEDC.
William V. Carey, President and CEO, stated, "We are please to complete this acquisition of a strong distributor in Western Poland. PHS has over 15 years experience in the market and will solidify our distribution presence in this key region of Poland."
As a result of this transaction, the Company is raising its full year 2007 net sales guidance from $1.10 - $1.15 billion to $1.13 - $1.18 billion, and its full year 2007 fully diluted earnings per share guidance from $1.56 - $1.72 to $1.57 - $1.73. The Company is also raising its full year 2008 net sales guidance from $1.20 - $1.30 billion to $1.26 - $1.36 billion, and its full year 2008 fully diluted earnings per share guidance from $2.00 - $2.10 to $2.03 - $2.13.
The 2007 and 2008 guidance given above does not factor in the impact of potential new acquisitions in Poland and the region, including the Parliament acquisition announced earlier, or exchange rate movements related to the Company's Senior Secured Notes. The number of shares used to calculate the 2008 fully diluted earnings per share guidance is approximately 40.9 million.