Tobacco Giant Adds Smokeless

Source from:  Altria Group 01/19/2009

Altria Group, based in Richmond, Va., has closed on its acquisition of UST, the biggest player in the U.S. smokeless-tobacco market. The buyout was valued at $10.4 billion, plus the assumption of $1.3 billion in debt. The deal gives UST shareholders $69.50 per share. UST, of Stamford, Conn., will become a subsidiary of Altria. Altria owns the No. 1 U.S. cigarette maker, Philip Morris USA, which sells the Marlboro brand in the United States. Altria also owns cigar maker John Middleton Co., Ste. Michelle Wine Estates Ltd. and a 29 percent stake in brewer SABMiller. Michael Szymanczyk, chairman and chief executive. 2007 compensation: $12.5 million. Employees: 84,000. 52-week stock high/low: $24.41/$14.34. Debt/capital percentage (lower is better): 30 percent; industry: 30 percent. Revenue growth: -60.6 percent; industry: 4.1 percent. Net margin (higher is better): 20 percent; industry: 9.3 percent. Return on equity: 42.9 percent; industry, 16.6 percent. Enditem