Imperial Tobacco has acquired US tobacco company CBHC, which trades as Commonwealth Brands, for $1.9bn (£974m).

Commonwealth Brands is the fourth largest cigarette manufacturer in the US. In the year to 30 September it reported pre-tax profit of $59m, on sales of $348m.

“This is an excellent deal for Imperial, which will create significant value for our shareholders, and is consistent with our strategy of entering the US tobacco market in a low risk manner,” said Gareth Davis, CEO of Imperial Tobacco.