BackSCANDINAVIAN TOBACCO GROUP A/S IS NOW THE WORLD'S SECOND LARGEST CIGAR COMPANY
After having received the necessary approvals from the relevant competition authorities, Skandinavisk Holding A/S and Scandinavian Tobacco Group A/S on 1 October 2010 closed the transaction with Swedish Match AB, which creates a world leading cigar and pipe tobacco company.
On 26 April 2010 it was announced that the parties had signed an agreement to form a new company by combining all the tobacco business of Scandinavian Tobacco Group A/S (STG) with the cigars and pipe tobacco business of Swedish Match AB (SM) (with the exception of its US mass market cigars). After having obtained the required approvals from a number of national competition authorities, the transaction has now been completed with effect from 1 October 2010.
The new company carries the name Scandinavian Tobacco Group and has an annual turnover of approximately MEUR 690 and an EBITDA of approximately MEUR 140 (based on 2009 results). Annually more than 2.5 billion cigars and 1,650 tons of pipe tobacco will leave the Group’s factories in Europe, Asia and Central America. The joint company has approximately 9,700 employees.
The new company, which has sales companies in 15 countries, is a market leader in a number of countries in Europe within cigars and pipe tobacco and holds more than 30% of the US premium cigar market. The company’s leading cigar brands include Café Crème, La Paz, Henri Wintermans, Colts, Mercator, Macanudo, CAO, Partagas (US), Cohiba (US) and Punch (US). Leading pipe tobacco brands are Erinmore, Borkum Riff, Clan, Half&Half, and W.Ø. Larsen.
Skandinavisk Holding A/S (SH) holds 51% of the shares in the new Scandinavian Tobacco Group, with the remaining 49% of the shares being held by Swedish Match AB (SM). Jørgen Tandrup, Chairman of SH and the former Scandinavian Tobacco Group (STG), is Chairman of the Supervisory Board and Conny Karlsson, Chairman of SM, holds the role as Deputy Chairman of the Supervisory Board.
Anders Colding Friis, CEO of the former STG, is CEO of the new Scandinavian Tobacco Group which is headquartered in Copenhagen, Denmark.
“After months of preparations we are very pleased now to be able to start the integration of the two businesses. The new Scandinavian Tobacco Group is a truly global company and we have an excellent basis in the combined brand portfolio to grow even further and increase profitability,” says Anders Colding Friis.
In Australia and New Zealand the competition authorities have given their approval to the transaction on the condition that the new company divests part of its business in those countries. The divestment will take place post closing and will not materially affect the operation or financial performance of the new joint business.
For further information, please contact:
Scandinavian Tobacco Group A/S
CEO Anders Colding Friis
(+45) 39 55 62 00
Further information about the new Scandinavian Tobacco Group A/S is also available at www.st-group.com.
ABOUT SCANDINAVIAN TOBACCO GROUP
- a world leading manufacturer of cigars and traditional pipe tobacco
- approx. 8,200 employees in the Dominican Republic, Honduras, Nicaragua, Indonesia, Europe, New Zealand, Australia, Canada and the US
The Group’s brand portfolio contains more than 200 international, regional and local tobacco brands, including the cigar brands Café Crème, La Paz, Henri Wintermans, Macanudo, CAO, Partagas (US) and Cohiba (US). Pipe tobacco brands include Captain Black, Erinmore, Borkum Riff and W.Ø. Larsen, while leading fine-cut tobacco brands include Bugler, Break, Escort, Bali Shag and Tiedemanns.
The Group is ultimately owned by two Danish foundations (51%) – the Augustinus Foundation and Det Obelske Familiefond – and by Swedish Match (49%). Both Danish foundations have been active in the tobacco industry for more than 250 years. Swedish Match is a publicly owned company listed on the Stockholm Stock Exchange.
Read more: www.st-group.com.
Scandinavian Tobacco Group A/S
Sydmarken 42
DK-2860 Søborg
Denmark
CVR 31 08 01 85
