Altria Group gobbles up cigar maker |
| MarketWatch - Nov 1, 2007 |
Altria Group is buying cigar maker John Middleton from privately held Bradford Holdings in cash deal worth $2.9 billion, the tobacco titan said Thursday.
Before the start of trading, Altria announced the deal - with a net cost of $2.2 billion after deducting tax benefits arising from the terms of the transaction - that will further diversify the company which has recently moved into the smokeless tobacco category as well.
It also takes place as the company prepares to spin-off its international division, noted Michael Szymanczyk, chief executive of Philip Morris USA, in the announcement and is "being undertaken to enhance our long-term growth momentum in the U.S. market and create shareholder value. The acquisition is both strategically compelling and financially attractive. It fits squarely with our announced strategy to grow our U.S. tobacco business beyond cigarettes and complements our recent initiatives in the smokeless category."
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- Posted: 2007-11-01 09:42:01
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