January 31, 2018
In a press release today, Scandinavian Tobacco Group (STG) announced they signed an agreement to acquire the business of Thompson and Co. of Tampa, Inc. (“Thompson”). According to the release, STG and Thompson and Co. agreed on a price of $62 Million USD in the all cash deal which is expected to close in the end of March 2018.
The acquisition is expected to have a 2019 positive impact on STG’s EBITA.
Thompson and Co. is family owned and a leading online retail cigar business in the US. It was founded in 1915 and has it home office in Tampa, Florida. With it’s 185 employees the company has annual net sales of approximately $100 million USD. The acquisition gives STG access to a huge US customer base, as well as auction and retail websites, a retail store and a call center located in Tampa, Florida. .
In the press release, CEO of Scandinavian Tobacco Group, Niels Frederiksen sated:
“I am pleased to announce this acquisition which strengthens our position in the online retail channel in the US.
Our existing US online retailer Cigars International will in combination with Thompson be able to deliver an unmatched range of premium cigars at the highest level of service to the US consumers.
At the same time we foresee significant cost synergies to the benefit of our customers and shareholders.”
The Press Release goes on to state:
The acquisition of Thompson is expected to deliver material synergies and scale benefits with the margins of the combined businesses over time being lifted towards Cigars International’s existing level. Thompson is currently operating with low single digit EBITDA margins.
Today’s announcement comes on the heels of a board shake up back in December of 2017 when Mr. Conny Karlsson, member of the Board of Directors of Scandinavian Tobacco Group A/S, notified the Board that he will resign. The company also reduced the the number of board members from four to two at the beginning of 2018, that simplifies the company’s governance structure and interaction between the Board and the Executive Management.
STG is planning town hall meetings in Cigar International’s office Bethlehem. PA and in the Scandinavian Tobacco Group’s office in Søborg, Copenhagen, Denmark. Senior management will present further information and answer questions about today’s announcement.
For further information, please contact:
For investor enquiries: Torben Sand, Head of Investor Relations, phone: +45 7220 7126 or email@example.com
For media enquiries: Simon Mehl Augustesen, Director of Group Communications, phone: +45 7220 7152 or firstname.lastname@example.org