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Scandinavian Tobacco Group’s Copenhagen headquarters |
SCANDINAVIA. Skandinavisk Holding A/S and Scandinavian Tobacco Group A/S have closed their previously announced transaction with Swedish Match AB, which creates the world’s second-largest cigar company and an even stronger world leader in pipe tobacco.
On 26 April 2010 the parties announced they 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 (except its US mass-market cigars).
Having obtained the required approvals from a number of national competition authorities, the transaction has now been completed with effect from 1 October.
The new company carries the name Scandinavian Tobacco Group. It has an annual turnover of approximately €690 million and an EBITDA of about €140 million (based on 2009 results).
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 each year. The joint company has some 9,700 employees.
The new company, which has sales companies in 15 countries, is market leader in a number of countries in Europe within cigars and pipe tobacco; and it 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 WØ Larsen.
New group appointments
Skandinavisk Holding A/S holds 51% of the shares in the new group, with the remaining 49% being held by Swedish Match. Jørgen Tandrup, Chairman of Skandinavisk Holding and the former Scandinavian Tobacco Group, becomes Chairman of the Supervisory Board and Conny Karlsson, Chairman of Swedish Match, is named Deputy Chairman of the Supervisory Board. Anders Colding Friis, CEO of the former Scandinavian Tobacco Group, 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,” said Colding Friis.
In Australia and New Zealand the competition authorities have given their approval to the transaction on condition that the new company divests part of its business in those countries. The divestment will take place after closing and will not materially affect the operation or financial performance of the new joint business, the company said.
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