Cigar Industry

STG Acquires Royal Agio for $235 Million

Jan 2, 2020 | By Gregory Mottola
STG Acquires Royal Agio for $235 Million

Scandinavian Tobacco Group has completed the acquisition of Royal Agio Cigars for 210 million euros (about $235 million). Based in The Netherlands, Royal Agio is known for machine-made brands such as Panter and Mehari’s as well as the premium cigar line Balmoral, a handmade brand produced in the Dominican Republic.

The deal began in September, and today, Denmark-based tobacco giant STG announced that the transaction was complete.

“I am very pleased that we have completed the acquisition of Royal Agio,” said Niels Frederiksen, CEO for STG, adding that the deal “significantly strengthens our position in several key machine-made markets in Europe…”

Founded in 1904, Royal Agio is based in Duizel, The Netherlands and has approximately 3,200 full-time employees. It claims to produce more than 770 million cigars per year (most by machine), and exports its products to more than 100 countries. Before the deal, the company was owned by the Wintermans family.

Scandinavian Tobacco Group is among the giants of the cigar industry, responsible for such brands as Macanudo, La Gloria Cubana and CAO through its subsidiary General Cigar Co.

“The acquisition leaves Scandinavian Tobacco Group as a bigger, more competitive and more profitable company better suited to pursue growth and create value for our shareholders,” Frederiksen said.

General Cigar Co.

More in Cigar Industry

See all
TAA Cancels 2020 Annual Convention Due to Coronavirus Outbreak

TAA Cancels 2020 Annual Convention Due to Coronavirus Outbreak

The 52nd annual Tobacconists Association of America meeting and convention, which was postponed a few …

Mar 26, 2020
COVID-19: How Cigar Shops Are Responding to the Coronavirus Pandemic

COVID-19: How Cigar Shops Are Responding to the Coronavirus Pandemic

With businesses shutting down across the U.S., and reports of Coronavirus multiplying with every news …

Mar 20, 2020
Multiple Cigar Factories Shut Down in the Dominican Republic

Multiple Cigar Factories Shut Down in the Dominican Republic

Tabacalera de Garcia Ltd. and General Cigar Dominicana announced today that they are closing as a …

Mar 20, 2020
Big Smoke Meets WhiskyFest Postponed Until October

Big Smoke Meets WhiskyFest Postponed Until October

With the Coronavirus outbreak affecting people all over the United States, the inaugural Big Smoke …

Mar 19, 2020
Drew Estate Postpones Florida Barn Smoker Amid Outbreak

Drew Estate Postpones Florida Barn Smoker Amid Outbreak

In response to the current Coronavirus outbreak, Drew Estate announced yesterday that the Florida …

Mar 19, 2020
[Update] Covid-19: Cigar Factories React to Viral Outbreak

[Update] Covid-19: Cigar Factories React to Viral Outbreak

Cuba's factories remain open despite four confirmed cases of the Coronavirus, and J.C. Newman Cigars …

Mar 17, 2020