Swedish Match in US Acquisition

Source from:  tr.itsmyiq.com Aug 16, 2007 08/20/2007

Swedish Match has agreed to acquire Cigars International (CI), a privately held US company that specializes in the direct marketing and sales of hand-made and machine-made premium cigars and related accessories. CI, which employs about 100 people, had sales of about SEK400 million during the 12 months to the end of June. The company, headquartered in Bath, Pennsylvania, was said by SM in a note posted on its website to utilize a coordinated, multi-channel direct marketing strategy that includes an internet presence through its www.cigarsinternational.com and www.cigarbid.com websites. The company offered an attractive product mix that included Macanudo, Romeo y Julieta, and Arturo Fuente, along with a strong mix of proprietary branded cigars and cigars sold exclusively by CI. "We are very pleased about the growth opportunities that this transaction represents," president and CEO, Sven Hindrikes, was quoted as saying. "The Cigars International business provides Swedish Match with a new marketing channel in the fast growing direct marketing segment. The immediate access to an extensive customer base allows Swedish Match to actively compete and gain a strong position in the US direct marketing premium cigar segment and expand our portfolio of products in the global premium cigar market." CI's founder and CEO, Keith Meier, and vice-president and COO, John De Marco, will continue in their roles, while the company will be operated as a complementary business to SM's existing US operations, Swedish Match North America and General Cigar Holdings. SM said the transaction, which is subject to regulatory approval and the terms of which have not been disclosed, was expected to be finalized during the third quarter of this year. Enditem