Imperial Tobacco to buy US cigarette brands | Fin24
 
  • Load Shedding

    Find the latest load shedding schedules for Joburg, Durban, Cape Town, and other cities.

  • Credit Rating

    SA can still avoid a downgrade to junk by Moody’s, says Reserve Bank Governor Lesetja Kganyago.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Imperial Tobacco to buy US cigarette brands

Jul 15 2014 15:43

(Shutterstock)

London - Imperial Tobacco Group plans to buy US cigarette brands including Winston and Kool for $7.1bn as part of Reynolds American's $27.4bn 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 US rights to the nation's leading e-cigarette brand, blu.

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

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

us  |  agribusiness  |  tobacco
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

#MINIBUDGET2019

Struggling power utility Eskom will take centre stage at this year's mini budget
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...