Tobacco One Announces Acquisition of Tobacco Products Manufacturer

Source from:  tr.itsmyiq.com Jun 4, 2008 06/05/2008

BusinessWire has reported that Tobacco One, Inc. announced that they have entered into an agreement to purchase "a leading U.S. tobacco product manufacturer." Under the terms of the agreement the name of the manufacturer is not be disclosed at this time. This manufacturer currently produces several types of tobacco products including cigarettes, cigars and roll your own tobaccos under various brand names within the United States. The business has gross annual sales of nearly $22 million with an estimated EBITDA of $2.5 million. Its annual growth rate has exceeded 30 percent per year over the past four years. The acquisition includes the purchase of all assets, equipment, machinery, trademarks, patents, production contracts and customer base. Current key management will stay on board for up to three years to oversee the continued expansion and to ensure a smooth transition for Tobacco One, Inc. "This first acquisition will serve as the platform for Tobacco One's planned expansion into the domestic and international marketplace," stated Shawn Ulizio, Tobacco One's president and CEO. "This purchase will enable Tobacco One, Inc. to have immediate representation in the domestic marketplace including such retailers as Sam's Club, Costco, 7-Eleven etc." Ulizio also noted that the acquisition of this manufacturer will further facilitate Tobacco One's current business role in Latin America, where several contracts are currently being negotiated and are expected to close this quarter. Tobacco One plans to make additional acquisitions in the future. These acquisitions are intended to position Tobacco One, Inc. as a premier manufacturer, marketer, and supplier of high quality, high margin tobacco products in the U.S. and abroad. Enditem