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Dimon Inc. (DMN), the No. 2 tobacco dealer, plans to acquire the world's third-largest processor, Standard Commercial Corp. (STW), in a stock transaction the companies value at about $670 million.
Dimon, Danville, Va., said Monday that it expects the resulting cost savings to boost earnings after their first full year together. The company named its current Chief Executive and Chairman Brian Harker to tackle the same roles in the combined company, to be called DimonStandard Inc.
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Independent leaf tobacco dealers DIMON Incorporated (NYSE: DMN - News) and Standard Commercial Corporation (NYSE: STW - News) today jointly announced that they have entered into a definitive merger agreement. Under the terms of the agreement, Standard Commercial common shareholders would receive three shares of DIMON common stock for each share of Standard Commercial common stock.
The combination of DIMON and Standard is expected to be accretive to earnings per share in the first full year after the merger as a result of significant cost savings and synergies and to drive profitable growth and build value over the long term by realizing enhanced economies of scale.
Standard Commercial Corporation (NYSE: STW) will report financial results for its second quarter ended September 30, 2004 at 5:00 p.m. ET, Monday, November 8, 2004.
Following the release of its financial results, Robert E. Harrison, Standard's Chairman, President & CEO, will host an AT&T teleconference with investors to review the announcement and answer questions at 8:30 a.m.
Standard Commercial Corporation (NYSE: STW - News; the "Company") today announced that, as a result of the previously announced administrative investigation into tobacco buying and selling practices within the Spanish market, the Directorate General for Competition ("DG Comp") of the European Commission ("EC") has imposed on it, its Spanish subsidiary, World Wide Tobacco Espana and two other of its subsidiaries, a fine of EUR 1,822,500.
Standard Commercial (STW:NYSE) will lay off 62 workers by next spring as it shuts down its tobacco processing operations in Italy.
The Wilson, N.C., tobacco leaf merchant said it expects to take a charge of $16 million to $20 million in its third quarter ending Sept. 30 to cover initial costs of the move. Standard Commercial said it could take further charges to complete the shutdown.
Standard Commercial Corporation (NYSE: STW ) today announced that after a thorough strategic review it has decided to discontinue its tobacco processing operations in Italy. The Company is in the process of closing its facilities there and has notified its employees and the Italian authorities in accordance with Italian law. . . .
Robert E. Harrison, Chairman, President and Chief Executive Officer, in making the announcement, said: "In recent years the Italian leaf tobacco market conditions as well as the strengthening of the Euro have had a significant adverse impact on our results in this market and our future projections indicate a continuation of this trend. Additionally, the recently enacted reform of the Common Agricultural Policy within the European Union and its likely effect on future tobacco production and costs have added further impetus for us to take this decision.
Standard Commercial Corporation (NYSE: STW) today reported June 30, 2004 first quarter loss from continuing operations of $3.8 million, versus income from continuing operations of $8.9 million in the June 30, 2003 first quarter. On a per share basis, both basic and diluted loss from continuing operations were $0.28 versus earnings of $0.66 and $0.62 respectively for the quarter ended June 30, 2003. The loss from the discontinued wool business for the quarter was $1.0 million versus the prior year loss of $2.3 million. Net loss totaled $4.8 million ($0.35 per basic and diluted share) versus net income of $6.6 million ($0.49 per basic share and $0.47 per diluted share) in the corresponding prior year quarter.
Sales for the three months ended June 30, 2004 increased by 6.6% to $185.6 million from $174.1 million in the prior year period. The volume of tobacco sold during the current quarter increased by 5.3% over the prior year quarter. This was mainly due to increased shipments from Brazil, Turkey, Italy and India. Sales were lower for Kenya/Congo, Argentina, Thailand and Malawi than the prior year period primarily due to delays in shipments.
Standard Commercial Corporation (NYSE: STW) today announced that its Board of Directors has appointed Nigel Grant Howard to its Board of Directors. Mr. Howard, a resident of Surrey, England, will join the Board immediately and will stand for election to a full term at the Company's annual meeting of shareholders in August. Mr. Howard retired as Deputy Chief Executive of Morgan Crucible Plc and currently serves as Deputy Chairman of Assam Carbon Products Ltd, India.
Standard Commercial Corporation (NYSE: STW) today reported its Board of Directors has declared a quarterly cash dividend of $0.0875 per share on the common shares of the Company, payable on July 15, 2004 to common shareholders of record at the close of business on June 30, 2004.
Standard Commercial Corporation (NYSE: STW) today announced that for the fiscal year ended March 31, 2004, income from continuing operations was $32.5 million versus $44.0 million in the prior year. Basic earnings per share from continuing operations was $2.39 versus $3.26 in the prior year. A loss on discontinued operations of $46.2 million versus the prior year's loss of $6.1 million was recorded as the Company is exiting the wool business. Net income was a loss of $13.6 million due to charges recorded to exit the wool business versus a profit of $37.9 million in the prior year. Basic loss per share was $1.00 versus basic earnings of $2.81 in the prior year.
Standard Commercial Corporation (NYSE: STW) today announced that it proposes to make a Rule 144A offering of $150 million in aggregate principal amount of senior notes due 2012. The company intends to use the proceeds of the proposed offering to redeem all of its outstanding 8-7/8% senior notes due 2005 and all of its 7-1/4% convertible subordinated debentures due 2007, and repay a portion of its existing revolving credit facility.
Moody's affirmed Standard Commercial Corporation's ("Standard Commercial") ratings and revised the rating outlook to stable from positive. The ratings affirmed are as follows: Standard Commercial Corp.: (i) Ba3 Senior Implied rating (ii) B1 Issuer rating (iii) B2 rating of the $45 million convertible debentures due March 2007 Standard Commercial Tobacco Company, Inc. ("SCTCI"): (iv) B1 rating of the $65 million senior notes due August 2005 The affirmation of the senior implied ratings reflects the company's significant market share and competitive market position, its close relationships with both its suppliers (tobacco growers) and customers (cigarette manufacturers), and improvements in productivity achieved over the past few years.
Standard Commercial Corporation (NYSE: STW) today reported its Board of Directors has declared a quarterly cash dividend of $0.0875 per share on the common shares of the Company, payable on March 15, 2004 to common shareholders of record at the close of business on February 27, 2004.
Standard Commercial Corporation (NYSE: STW ) today announced that for the quarter ended December 31, 2003, income from continuing operations was $6.4 million versus $12.0 million in the prior year's quarter. The recent quarter was impacted by the accelerated timing of shipments in the first half of this fiscal year. For the nine months year to date, income from continuing operations was $29.6 million versus $35.1 million for the prior year nine months period. Basic earnings per share from continuing operations for the quarter was $0.47 versus $0.89 per share in the prior year period. Basic earnings per share from continuing operations for the current nine months was $2.18 versus $2.61 in the prior year's period.
As previously disclosed, the Company has made the decision to exit the wool business.
Standard Commercial Corporation (NYSE: STW) reported its Board of Directors has declared a quarterly cash dividend of $0.0875 per share on the common shares of the Company, payable on December 15, 2003 to common shareholders of record at the close of business on November 28, 2003.
The Company also announced the appointment of H. Carl McCall to its Board of Directors.