Scandinavian Tobacco Group Acquiring Thompson For $62 Million
- January 31, 2018 |
- By Gregory Mottola
Danish tobacco company Scandinavian Tobacco Group has agreed to acquire Thompson and Co. of Tampa Inc., (aka. Thompson), one of the industry’s largest catalog and internet cigar retailers.
According to STG, Thompson was purchased for $62 million in cash. The deal is expected to close by the end of March.
This acquisition gives STG its second major catalog and retail operation, as the tobacco giant also owns Cigars International. STG claims that two-thirds of all handmade cigars are sold online and Tampa-based Thompson has annual sales of $100 million.
“I am pleased to announce this acquisition which strengthens our position in the online retail channel in the U.S.,” said Niels Frederiksen, CEO of STG. “Our existing U.S. 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 U.S. consumers.”
With the acquisition, STG gains access to Thompson's huge customer base, auction and retail websites, 185 employees, a retail store and a call center facility in Tampa.
“Having spent 58 years making Thompson Cigar one of the most respected mail order cigar businesses in the country, it is now time to hand over the reins to a new owner that can continue to serve the long-term interest of the company,” said Bob Franzblau, CEO of Thompson, in an official release.
Thompson is a private, family-owned business, founded in 1915 and claims to be the oldest mail-order cigar company in the U.S.
In addition to owning a large portfolio of machine-made cigars, pipe tobacco and fine-cut tobacco, STG is the parent company of General Cigar Co., makers and distributors of major premium brands such as Macanudo, Partagas, CAO and Cohiba. STG produces three billion cigars annually, most of which are made by machine.