Meharis_Red_Orient

Source: STG

Royal Agio owns cigar brands including Mehari’s, Panter and Balmoral

Scandinavian Tobacco Group has completed the acquisition of Dutch cigar maker Agio Beheer BV, the holding company of the Royal Agio cigars group.

STG first announced the deal on 16 September and it completed yesterday (2 January), following a statutory works councils consultation process in the Netherlands and clearance from competition authorities.

Royal Agio owns cigar brands including Mehari’s, Panter and Balmoral. It is based in Duizel, the Netherlands and has approximately 3,200 full-time employees. It reported full-year sales of €133m in 2018 will an EBITDA of €18m.

STG said the deal would secure leading positions in France, Belgium and the Netherlands and significantly improves the position in other key cigar markets such as Spain and Italy.

“I am very pleased that we have completed the acquisition of Royal Agio, which significantly strengthens our position in several key machine-made cigar markets in Europe and enables us to deliver an even more attractive range of cigars of the highest standards to our consumers,” said STG CEO Niels Frederiksen.

“The acquisition leaves Scandinavian Tobacco Group as a bigger, more competitive and more profitable company better suited to pursue growth and create value for our shareholders.”