Have a few nickles laying around?
It is being reported today that Imperial Brands, PLC has announced it plans to sell its premium cigar business, a business that includes such major non-Cuban brands as Montecristo, Romeo y Julieta, Aging Room, and H. Upmann. You may recognize these top brands as part of the Atlidas S.A. portfolio, which Imperial Brands, PLC has owned since acquiring Altidas back in 2007 in $22.4 Billion deal.
They also will be selling their 50% holding of Habanos S.A., which you all know as the manufacturer of all Cuban branded cigars. Everything associated with the premium cigar business is being divested which includes ownership in Tabacalera de Garcia, the largest factory in the Dominican Republic, retail & internet cigar house JR Cigar, and the recently opened chain of Casa de Montecristo cigar lounges that have been popping up around the country.
The company said this is all part of a $2.6 Billion divestiture program. A company spokesman was quoted today as saying:
“The sale of the business provides an attractive opportunity to realize shareholder value. The program supports Imperial’s ongoing simplification agenda and will release capital to pay down debt and, where appropriate, invest in its growth agenda.”
After the divestiture of all thing premium cigars, the company will maintain a wide tobacco portfolio that includes cigarette brands: Winston, Kool and Salem. They will still own their mass market cigar operations that produce internationally known brands like Dutch Masters and Backwoods and there is a logistics business that the company will retain.
Prior to today’s announcement, Imperial Brands PLC was a $30 Billion company and is headquartered in Bristol, United Kingdom.
Stay Tuned as we learn more on this.
Any thoughts on who may pick this juggernaut up?