Swedish Match announces signed agreement between Scandinavian Tobacco Group and Reynolds American, Inc. for the acquisition of Lane Limited
Swedish Match announces that Scandinavian Tobacco Group A/S (STG) has signed an agreement with Reynolds American, Inc. for the acquisition of Lane Limited (Lane). STG is 49 percent owned by Swedish Match AB.
In its press release, released earlier today, STG stated that Lane is expected to annually contribute an EBITDA of 45 MUSD, and sales volumes of 525 tons of pipe tobacco, 980 tons of fine-cut tobacco, and 450 million little cigars. STG will pay 205 MUSD in cash for Lane.
STG also stated in its release that, “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”.
On October 1, 2010, Swedish Match acquired 49 percent of STG, and contributed its US premium and European cigar businesses as well as its pipe tobacco businesses to the new entity.
The proposed transaction is subject to anti-trust review and approval by the US Federal Trade Commission (FTC). The deal is expected to close in the first half of 2011.
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