Imperial Tobacco (IMT) has completed the £4.6bn deal to buy US cigarette and e-cigarette brands from Reynolds and Lorillard.
The UK-listed tobacco firm announced the completion of the deal today after receiving approval from US regulators and its own shareholders.
Alison Cooper, Chief Executive of Imperial Tobacco, said: “I’m delighted to announce the completion of this deal, which will transform our position in the US and generate significant returns for our shareholders.
“We will focus on leveraging our enhanced scale and capabilities to maximise growth opportunities for our portfolio and establish ITG Brands as a major competitive player in the US tobacco market. I’m also pleased to announce senior appointments that will strengthen our management structure and ensure that it is aligned with the group’s on-going international development.”
Imperial has bought the Winston, Maverick, Kool, Salem brands and e-cigarette brand blu, plus the national sales force, offices and production facilities currently owned by Lorillard
The assets have been acquired for $7.1bn (£4.6bn) or $5.6bn (£3.6bn) after adjusting for the value of expected tax benefits of around $1.5bn.
Announcing completion of the deal today, Imperial said the rationale was based up its strategy of investing in growth brands and growth markets and it increases diversity of its cash flows.
Returns are expected to be over 10% and the deal “transforms Imperial into a major US competitor” with around 10% cigarette market share and national distribution.