Tags: Imperial Tobacco | Cigarette | Winston | Kool

Imperial Tobacco to Buy US Cigarette Brands for $7.1 Billion

Tuesday, 15 July 2014 09:12 AM

Imperial Tobacco Group plans to buy U.S. cigarette brands including Winston and Kool for $7.1 billion as part of Reynolds American's $27.4 billion purchase of Lorillard.

Imperial's purchase, meant to ease antitrust concerns from the marriage of the United States' No. 2 and No. 3 tobacco firms, also includes Maverick, Salem and the international and U.S. rights to the nation's leading e-cigarette brand, blu.

After adjusting for the present value of tax benefits, expected at $1.5 billion, Imperial said the net price of $5.6 billion implies a multiple of 6.9 times the brands' earnings before interest, tax, depreciation and amortization.

Reynolds, maker of Camel cigarettes, agreed on Tuesday to buy Newport-maker Lorillard, for $68.88 per share, or $27.4 billion.

© 2021 Thomson/Reuters. All rights reserved.


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Imperial Tobacco Group plans to buy U.S. cigarette brands including Winston and Kool for $7.1 billion as part of Reynolds American's $27.4 billion purchase of Lorillard.
Imperial Tobacco, Cigarette, Winston, Kool
119
2014-12-15
Tuesday, 15 July 2014 09:12 AM
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