The company said that the net proceeds expected from the sale of its Polish distribution business, which were initially targeted as partial consideration for the acquisition of Nemiroff, are anticipated to be used to “maximize return on capital, increase fully diluted earnings per share and/or reduce financial leverage”.
William Carey, president and CEO said: “We have decided to withdraw from the sale process of the Nemiroff Company. We have full respect for the management of the Nemiroff Group, who have been able to build a successful brand over the last ten years, but after thorough analysis we have determined that it is not in the company's interests to continue to pursue this transaction at this time.“
Carey continued: “We have invested over $1.5 billion over the last three years in Russia and will look to maximize the return on this deployed capital. We believe we have a solid leading market position to capture further growth in the region in the next three to five years and management will continue to focus on maximizing this opportunity.
“We are still on track to close the sale of our Polish distribution business in the beginning of August 2010, and expect to determine the use of proceeds shortly thereafter. We are committed to investing our capital to maximize shareholder return as well as reducing our net debt ratios.”