Stock Spirits in exclusive negotiations for acquisition of Nemiroff

2010-08-29

Stock Spirits, the owner of Zoladkowa Gorzka vodka brand, is in exclusive negotiations with Nemiroff, the largest vodka producer in Ukraine, for the acquisition of the latter firm. The exclusive negotiation rights will expire by the end of August 2010. The takeover of a stake of between 75-100% in Nemiroff could be completed within the following month, the Russian daily Kommersant reported that.
The value of the Ukrainian producer is estimated at around $330-370m. Nemiroff controls 18% of the Ukrainian vodka market in terms of value and 3% of the Russian one. In Poland, Nemiroff controls 1% of the market. Still, in H1 2010, the company increased its sales by 20% on the Polish market. Moreover, in mid-2010, the Ukrainian producer introduced the company's vodka in the mainstream segment, which may further boost the sales. Previously, it offered only Nemiroff in the top premium category.
Another company interested in acquisition of the Ukrainian firm is Russkij Standard, a Russian alcohol group. Previously, CEDC also intended to acquire Nemiroff; however, in July 2010 it withdrew from the negotiations.