Scandinavian Tobacco Group A/S: Scandinavian Tobacco Group acquires a leading US online cigar retailer
January 31 2018 - 4:31PM
COMPANY
ANNOUNCEMENT
No. 1/2018
Copenhagen, 31 January 2018
Scandinavian Tobacco Group
acquires a leading US online cigar retailer
Scandinavian Tobacco Group today signed an
agreement to acquire the business of Thompson and Co. of Tampa,
Inc. ("Thompson"). The purchase price amounts to USD 62 million and
the acquisition will be financed by existing
cash at hand. The closing of the deal is expected to take place by
the end of March 2018.
Thompson is a leading online retail cigar
business in the US, a market where approximately two thirds of all
handmade cigars are sold online. A family-owned business, Thompson
was founded in 1915 and is based in Tampa, Florida. It has annual
net sales of c. USD 100 million and 185 employees. Thompson
provides Scandinavian Tobacco Group access to a substantial and
attractive customer base, auction and retail websites as well as a
retail store and a call centre facility in Tampa.
CEO of Scandinavian Tobacco Group, Niels Frederiksen says: "I am
pleased to announce this acquisition which strengthens our position
in the online retail channel in the US. Our existing US online
retailer Cigars International will in combination with Thompson be
able to deliver an unmatched range of premium cigars at the highest
level of service to the US consumers. At the same time we foresee
significant cost synergies to the benefit of our customers and
shareholders."
The acquisition of Thompson is expected to deliver material
synergies and scale benefits with the margins of the combined
businesses over time being lifted towards Cigars International's
existing level. Thompson is currently operating with low single
digit EBITDA margins.
The acquisition is expected to have a positive impact on the
Group's adjusted EBITDA during 2019.
For further information, please
contact:
For investor enquiries: Torben Sand, Head of
Investor Relations, phone: +45 7220 7126 or
torben.sand@st-group.com
For media enquiries: Simon Mehl Augustesen,
Director of Group Communications, phone: +45 7220 7152 or
simon.augustesen@st-group.com
Company Announcement 1
2018
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Scandinavian Tobacco Group A/S via
Globenewswire
Stonepath (AMEX:STG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Stonepath (AMEX:STG)
Historical Stock Chart
From Jul 2023 to Jul 2024