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.
“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.