Imperial Brands is withdrawing from the premium cigar business to focus on vaping, with a 1.23 billion euro ($1.33 billion) sale of hand-rolled makes including Cohiba and Montecristo which will help it pay down debt.
) is withdrawing from the premium cigar business to focus on vaping, with a 1.23 billion euro sale of hand-rolled makes including Cohiba and Montecristo which will help it pay down debt.
Imperial will retain its machine-made cigar business, whose most popular brand is Backwoods, which only constitutes a small proportion of its overall revenues. The firm entered the premium cigar business in 2008 with the acquisition of Spain’s Altadis. But 360 Research Reports said in February, before the coronavirus crisis fully hit, that it expected the worldwide market to grow at about 2.5% a year over the next five years, reaching $18.5 billion in 2024.
Even though the company has not witnessed any changes in consumption of tobacco during the coronavirus crisis, it forecast that its earnings per share would be lower than last year mainly due to a U.S. ban on the sale of certain flavoured e-cigarettes.The maker of Winston and Gauloises Blondes cigarettes said the sale will be in two parts, with Gemstone Investment Holding buying its U.S. unit for 185 million euros and Allied Cigar Corp buying the rest for 1.04 billion euros.
“However, the fact that it was 2 buyer groups plus dealing with the Cuban government during the sale explains the delay,” she said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How Mike Bloomberg spent $1 billion on his presidential campaign - Business InsiderMike Bloomberg's failed presidential campaign cost him over $1 billion. Here are some of the things the billionaire spent money on, from free booze and NYC apartments for staff to sponsored Instagram posts.
Read more »
Why my husband and I bought $1 million of life insurance each - Business InsiderAfter buying a house together, they knew they wanted the other person to be able to live there without worry if the other person died unexpectedly.
Read more »
Imperial's premium cigar era draws to a close in $1.33 billion saleImperial Brands is withdrawing from the premium cigar business to focus on vaping, with a 1.23 billion euro ($1.33 billion) sale of hand-rolled makes including Cohiba and Montecristo which will help it pay down debt.
Read more »
Four Numbers That Show How Coronavirus Is Dramatically Reshaping Retail As We Know ItHere are 4 numbers that show how the coronavirus is dramatically reshaping retail as we know it: by theothersarahh
Read more »
Special Report: Countries, companies risk billions in race for coronavirus vaccineIn the race to develop a vaccine to end the COVID-19 pandemic, governments, charities and Big Pharma firms are sinking billions of dollars into bets with extraordinarily low odds of success.
Read more »
A flood of business bankruptcies likely in coming monthsThe billions of dollars in coronavirus relief targeted at small businesses may not prevent some of them from ending up in bankruptcy court.
Read more »