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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 25, 1999
Central European Distribution Corporation
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<S> <C> <C>
Delaware 0-24341 54-1865271
State of Incorporation Commission File number IRS employer Identification #
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1343 Main Street, Suite 301, Sarasota Florida 34236
Address of Principal Executive Offices
Registrants Telephone number including area code (941) 330 1558
211 N. Union Street, Suite 100, Alexandria Virginia 22314
Former Address
Item # 5 Other events.
See attached press release (Exhibit 1) announcing the agreement. The Board of
Directors approved the agreement on February 16th, 1999.
Signatures
Pursuant to the requirements of the SECURITIES EXCHANGE ACT OF 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Central European Distribution Corporation
(Registrant)
Date: February 25, 1999 Jeffrey Peterson
Executive Vice-President
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Exhibit 1
Central European Distribution Corporation to Acquire Major Alcohol Products
Distributor in Poland
Sarasota, Florida, February 12, 1999: Central European Distribution Corporation
(NASDAQ:CEDC) announced today that it has signed a definitive agreement to
purchase Multi Trade Company (MTC), a major distributor of alcohol products in
Poland with sales of approximately $43 million and operating profits of
approximately $1.0 million in 1998. The purchase of MTC, which is based in the
northeastern Polish city of Bialystok, will position CEDC as the leader in
Polish domestic vodka distribution, in addition to its current role as a
distribution leader for imported beers, wines and spirits. The acquisition is
expected to be accretive to per share earnings in 1999.
William Carey, President and CEO of CEDC, stated, "We are excited about the
prospects of a combined entity with the acquisition of MTC. MTC's geographical
client base is appealing in a region that we currently do not serve. We believe
that by expanding into this region, we will be able to increase sales of our
higher margin imported beers, wines and spirits, one of our strategic
objectives. Additionally, the acquisition will provide a national synergy in
domestic vodka distribution, as the combined companies will be the leader in
that market sector. We are also pleased to be acquiring a strong management
team, including Wojciech Strzalkowski, who will become a member of the combined
Company's management in Poland."
Wojciech Strzalkowski, President of MTC, commented, "We are very pleased to be
combining with CEDC. With the current consolidation in the alcohol distribution
market, and the pending privatization of the
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state-owned vodka distilleries, we are fortunate to be going not only with an
innovative market leader, but also with a company that has a nationwide
distribution system, a broad portfolio of products and a clear competitive edge.
This is the right deal for us at the right time."
Under the terms of the agreement, MTC will be paid approximately $2.5 million in
cash based on an agreed asset formula, as well as 254,230 shares of CEDC stock.
The transaction will be accounted for as a purchase and be subject to final CEDC
Board approval, as well as other conditions. Closing is expected before mid-
year.
CEDC is the leading importer of beers, wines and spirits, as well as the largest
distributor of domestic vodka on a nationwide basis in Poland, a four billion-
dollar market at the retail level in 1997.
Except for the historical information contained herein, the matters discussed in
this news release are forward looking statements that involve risks and
uncertainties that are detailed from time to time in the Company's SEC reports,
including but not limited to the discussions in the M, D & A included in the
Quarterly Report on Form 10-Q for the third quarter 1998.
For further information contact Jeffrey Peterson, Executive Vice President, at
(941) 330-1558 or visit our Web site at http://www.ced-c.com.
