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Home > What's New > $4 Billion BAT Deal for ST Group's Cigarettes -- Cigars Unaffected
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$4 Billion BAT Deal for ST Group's Cigarettes -- Cigars Unaffected
Posted: Wednesday, March 19, 2008
By David Savona
Lucky Strike maker British American Tobacco PLC (BAT) has agreed to acquire most of Skandinavisk Tobakskompagni A/S for $4.1 billion. ST, the parent company
of C.A.O. International Inc. and the maker of Café Crème and Henri Wintermans cigars, will retain its cigar business, including C.A.O.
"We've been a shareholder [in ST] for more than 30 years," said David Bettridge, a spokesman for BAT. "The other shareholders agreed to essentially break up ST."
BAT is buying 100 percent of ST's cigarette business, which includes the Prince brand, its snus business (snus is a form of smokeless tobacco that is popular in northern Europe) and most of the company's roll-your-own tobacco business.
ST Cigar Group, a unit of ST, acquired C.A.O. in January 2007 for undisclosed terms. In addition to cigars, ST will retain its pipe tobacco business, some roll-your-own tobacco, a grocery business and an amusement park.
"ST Group is now more focused than ever upon those segments," said Jon Huber, the director of lifestyle marketing for C.A.O. International.
From the March 4 issue of Cigar Insider.
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