Imperial Tobacco share price marginally up as tobacco giant completes US assets acquisition
Imperial Tobacco Plc (LON:IMT) today announced that it had completed its acquisition of several US cigarette and e-cigarette brands currently owned by Reynolds and Lorillard. The UK tobacco giant said that the brands were acquired for $7.1billion (£4.6 billion) or $5.6bn (£3.6bn) after adjusting for the present value of expected tax benefits.
Imperial Tobacco expects the acquisition, which received approval from the US Federal Trade Commission (FTC) last month, to boost its presence in the US, as well as its brand portfolio, sales capability and infrastructure. In addition, the purchase of e-cigarette brand ‘blu’ will open the door to new opportunities for the company in the burgeoning e-cigarette market.
Imperial Tobacco chief executive officer Alison Cooper 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.”
Alongside the announcement of the acquisitions, Imperial Tobacco also took the opportunity to inform investors of several management changes that have been made, including the appointment of Matthew Phillips, previously Corporate Affairs Director, as Chief Development Officer. The company said that these changes were made to ensure that the right management structure is in place to lead the enlarged group.
“I’m 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,” Cooper commented on the changes.
In today’s trading, Imperial Tobacco shares were up 0.3 percent at 3,277.00p, as of 14:35 BST. The stock has risen 15.5 percent since the start of the year and the company’s market capitalisation currently stands at £31.36 billion.
As of 16:18 BST, Friday, 12 June, Imperial Tobacco Group PLC share price is 3,261.00p.