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.
____________
For further information, please contact:
Lars Dahlgren, President and Chief Executive Officer
Office +46 8 658 0441, Mobile +46 70 958 0441
Joakim Tilly, Chief Financial Officer
Office +46 8 658 0213, Mobile +46 76 860 9597
Emmett Harrison, Senior Vice President Corporate Communications and
Sustainability
Office +46 8 658 0173, Mobile +46 70 938 0173
____________
The character of this information is such that it shall be disclosed by Swedish
Match AB (publ) in accordance with the Swedish Securities Markets Act. The
information was disclosed to the media on 14 January, 2011 at 14.30 p.m. (CET).
____________
Swedish Match develops, manufactures and sells market-leading brands in product
areas Snus and snuff, Other tobacco products (US mass market cigars and chewing
tobacco) and Lights. The Group sells products across the globe, with production
units in seven countries. The Group's global operations generated sales of
14,351 MSEK for the twelve month period ending September 30, 2010. The Swedish
Match share is listed on the NASDAQ OMX Stockholm (SWMA).
____________
Swedish Match AB (publ), Box 7179, SE-103 88 Stockholm
Visiting address: Västra Trädgårdsgatan 15, Telephone: +46 8 658 02 00
Corporate Identity Number: 556015-0756
www.swedishmatch.com
Press release (PDF):
http://hugin.info/1228/R/1479879/415488.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Swedish Match AB via Thomson Reuters ONE
[HUG#1479879]