Last updated on June 16th, 2015 at 11:17 am
Reynolds American Inc. (RAI) has completed its acquisition of Lorillard Inc. and related divestiture transactions. As a result of the acquisition, Lorillard is a subsidiary of RAI.
RAI’s operating companies have key brands across major industry categories: Newport, Camel, Pall Mall and Natural American Spirit in combustible cigarettes; Grizzly in smokeless tobacco; and VUSE in the vapor market.
In the related divestiture transactions, subsidiaries of RAI have sold the KOOL, Salem, Winston, Maverick and blu eCigs brands as well as other assets and liabilities to ITG Brands LLC and a subsidiary of Imperial Tobacco Group PLC for total consideration of approximately $7.1 billion in cash.
“As a result of this acquisition, Reynolds American has a significantly strengthened, balanced and diversified portfolio of iconic brands across all key categories—the most balanced in the industry,” said Susan Cameron, RAI’s president and CEO. “The transaction supports RAI’s efforts to lead the transformation of the tobacco industry. The synergies, improved operational efficiencies and higher sales volumes generated by this combination will better position RAI’s operating companies to fuel continued investment in brand building, R&D and innovation for the long-term future of the company.”
