Cases & Deals

Goldman Sachs invests in Russian Alcohol

Client(s) Goldman Sachs International

Jones Day advised Goldman Sachs International in connection with the investment by its European Special Situations Group in Lion/Rally Cayman 1 LP, a limited partnership managed by Lion Capital LLP, a London based private equity firm focused on the consumer sector. Lion/Rally Cayman 1 LP's first acquisition completed on 8 July 2008 when it acquired Russian Alcohol Group from Industrial Investors Group.

Russian Alcohol is the largest producer of vodka and ready-to-drink alcoholic beverages in Russia. Since its creation in 2003, the company has grown to become a leader in the Russian spirits industry, with a portfolio of market-leading spirits products. Russian Alcohol's leading brand, Green Mark (Zelenaya Marka), is the largest vodka brand by sales in Russia, and one of the top five globally. The company also produces Zhuravli, a top-selling premium vodka and one of the fastest growing vodka brands in Russia.

Goldman Sachs invested in the Russian Alcohol Group through its equity commitment to Lion/Rally Cayman 1 L.P. Among the other co-investors was the NASDAQ quoted Central European Distribution Company which invested equity and purchased exchangeable notes. Lion Capital has a put option exercisable from 2010 under which it can require CEDC to purchase all of the other interests in Russian Alcohol Group. CEDC also has a call option exercisable from 2010.