BackSCANDINAVIAN TOBACCO GROUP ACQUIRES BELGIAN CIGAR MANUFACTURER
Today, Scandinavian Tobacco Group A/S signed an agreement with the Verellen family to acquire the Belgian cigar company Verellen NV (hereafter Verellen). The acquisition strengthens the Group’s market position in important European markets and drives consolidation in the cigar market further.
In 2013, Verellen had sales of EUR 33 million and an EBITDA of EUR 4 million. The Company grew sales by 1.7%.
Verellen manufactures 185 million cigars yearly at its facility in Wuustwezel, Belgium, and employs approx. 125 people in Belgium and France. Its strongest brand, Gold, is a market-leading brand in Belgium where it has grown its market share continuously due to its unique packaging design and strong position in the increasing market for flavoured cigars.
CEO, Anders Colding Friis, Scandinavian Tobacco Group, says:
“Verellen offers an excellent business opportunity in key European markets. The company has great products and strong brands together with a history of stable sales and cash flow. Today, STG has no. 1 market positions in Belgium, Luxembourg and France. The acquisition enhances our leadership in those markets where cigar consumption is high, in the case of Belgium, the highest cigar consumption pr. capita in Europe.”
“We aim at growing our market leadership by winning market shares. In addition, we have a proven track record of acquisitions and achieving synergies. The Verellen acquisition reflects our pursuit of consolidation of the cigar market which is fragmented with many, often family-owned, companies. We are very pleased to welcome Verellen to our Group and are looking forward to the opportunities this transaction gives us in especially the important Belgian and French markets.” The transaction will take effect on 1 September 2014.
For further information please contact: CEO, Anders Colding Friis or Director of Group Communications, Kaspar Bach Habersaat, kaspar.bach@st-group.com or phone +45 7220 7152.
About Verellen
- Organisation: Belgian family-owned manufacturer and distributor of cigars. Has been active for more than 140 years. Run by the brothers Erik and Frank Verellen, fifth generation of the Verellen family. Headquarters and manufacturing site in Wuustwezel, Belgium.
- Brand Portfolio: Several strong and well-known brands, including Gold, which is a market-leading brand in Belgium. Other brands are Alternativos Natural, Poncho, Palm, Emotion and Paradise.
- Geographies: Strongholds in Belgium, Luxembourg and France. Has sales to several other European countries and the US.
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
