Tobacco.org

Imperial Tobacco in $1.9bn US deal  

Consolidation in the global tobacco industry took another step forward on Thursday with the acquisition of CBHC, the US-based owner of Commonwealth Brands, by Imperial Tobacco, the world's fourth-biggest cigarette company, for £974m ($1.9bn) cash.

Commonwealth Brands, maker of the USA Gold and Sonoma brands, is the fourth largest cigarette manufacturer in the US and is owned by Houchens Industries, the owner of supermarket, construction and insurance businesses. It makes 14bn cigarettes a year, giving it 3.7 per cent of the $376bn US market but more significantly 13.2 per cent of the discount sector. Story continues below ↓ advertisement

Gareth Davis, chief executive of Imperial, said the deal satisfied his desire to make a "low risk" entry into the US market.

"I am delighted that we will finally have the US as a significant part of our international footprint and believe that we will benefit considerably from having the US in our market portfolio," he said.

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