BackSCANDINAVIAN TOBACCO GROUP A/S SIGNS AGREEMENT TO ACQUIRE LANE, LIMITED
Scandinavian Tobacco Group A/S signs agreement to acquire Lane, Limited, which strengthens its US market position and global leadership
14 January 2011 Scandinavian Tobacco Group A/S signed an agreement with Reynolds American Inc. for the acquisition of Lane, Limited, US. With the acquisition Scandinavian Tobacco Group A/S strengthens its position as a world leader within pipe tobacco and gains a leading position within fine-cut tobacco in the US.
Lane, Limited, (Lane) based in Georgia, US, is expected to annually contribute an EBITDA of 45 M$, and sales volumes of 525 tons of pipe tobacco, 980 tons of fine-cut tobacco, and 450 million little cigars. Scandinavian Tobacco Group A/S (STG) will pay $205 million in cash for Lane.
With the acquisition of Lane STG reaches an estimated annual turnover of approximately 800 MEUR, and sales volumes of more than 2.5 billion cigars, 2,175 tons of pipe tobacco, 3,170 tons of fine-cut tobacco, and 450 million little cigars. The company will have approximately 10,000 employees globally.
Lane’s brand portfolio, which includes Captain Black pipe tobacco and little cigars as well as Winchester little cigars, provides STG with a strong market position in the US and in several non-US markets. The Lane fine-cut tobacco brands, Bugler and Kite, will extend STG’s significant fine-cut tobacco market position in Scandinavia to include the position as a leading fine-cut tobacco manufacturer in the US securing the company a significant platform to expand its business.
“The acquisition of Lane is in accordance with our ambition to strengthen our position within 'roll-your-own'/fine-cut tobacco. Furthermore, STG will hold a platform to establish a mass-market sales force in the US and ensure growth on that market,” says Anders Colding Friis, CEO of Scandinavian Tobacco Group.
The proposed transaction is subject to anti-trust review and approval. The deal is expected to close in the first half of 2011.
For further information, please contact:
Scandinavian Tobacco Group A/S
CEO Anders Colding Friis (+45) 3955 6200
Executive Vice President Christian Hother Sørensen (+45) 3955 6200
Further information about 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
