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.


Imperial Tobacco to buy US cigarette brands

Jul 15 2014 15:43


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


Read Fin24’s Comments Policy 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
Comments have been closed for this article.

Company Snapshot


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