BAT to Snap up Bulgarian Tobacco Brands for €100m

Source from:  The Times 04/14/2017

　　British American Tobacco has yet to complete a $49.4 billion deal to take control of Reynolds American, but it has lined up its next acquisition.

　　The Dunhill and Lucky Strike owner announced yesterday that it had agreed to acquire a package of leading cigarette brands from Bulgartabac, the Bulgarian group, in a deal worth more than €100 million.

　　BAT, which has operated in Bulgaria for 25 years, said the acquisition of the Victory, Eva Slims and GD brands would expand its market share there from 12 per cent to 40 per cent.

　　It said that the deal, which includes retail and distribution assets in Bulgaria and the wider Adriatic region, was subject to anti-trust approvals and was expected to be concluded by the end of June.

　　The company said that the acquisition was the biggest investment in Bulgaria so far this year and reflected the country’s "growing reputation as a leading destination for international investors". BAT said it had a strong record of acquiring brands and other assets in central and eastern Europe and growing them "to the benefit of the company, its employees and the local economy".

　　Two years ago it paid €550 million for TDR, a Croatian company with operations in Bosnia and Serbia, from Adris Grupa, a local conglomerate.

　　BAT Bulgaria will become one of the top five taxpayers in Bulgaria and create more than 100 jobs while securing 1,000 jobs in distribution.

　　BAT said: "This transaction aligns financially and strategically with the business objectives for the central European area, allowing us to grow our already successful business in Bulgaria and enhance our position within the Balkans."

　　The move comes as BAT puts the finishing touches to its acquisition of the 57.8 per cent of Reynolds American that it does not already own.

　　Shares in BAT closed 10p lower on ￡53.82. Enditem