JT Announces Gallaher Integration Plan

Source from:  tr.itsmyiq.com Aug 9, 2007 08/10/2007

In announcing today that its planning for the integration of Gallaher had been completed, Japan Tobacco Inc, said that the company's incorporation into its international business (JT International – JTI) would create new opportunities for top-line growth, while generating significant synergies from the merging of the two businesses. 'JT aims to achieve annual cost saving synergies of more than US$300 million by the end of 2010,' according to a JT press note. 'These synergies will be achieved through programs such as headquarter integration, procurement and manufacturing footprint optimization, and sales and distribution efficiency. Many of these measures will be implemented by the end of 2009. 'In addition, JT is confident that the combined international business will deliver top-line synergies of at least US$100 million by the end of 2010, and will pursue even greater top-line synergies in the future. These synergies will be achieved through the application of a more competitive and balanced brand portfolio across a greater number of markets. 'JTI will continue to focus and invest consistently in its Global Flagship Brands (GFB), which now include Winston, Camel, Mild Seven, Benson & Hedges, Silk Cut, LD, Sobranie and Glamour. The company will also broaden its business base, increasing the number of markets which generate EBITA in excess of US$50 million. 'JTI will proceed with the rapid and smooth integration of Gallaher, with the goal of exceeding an average annual growth of 10 per cent in EBITDA for the three subsequent years following 2008.' Enditem