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Imperial Tobacco to Buy Commonwealth to Enter U.S. (Update9) 

Imperial Tobacco Group Plc, the U.K. maker of Lambert & Butler, agreed to buy Commonwealth Brands for $1.9 billion to enter the U.S. discount cigarette market.

The purchase of Bowling Green, Kentucky-based Commonwealth from closely-held Houchens Industries Inc. adds five brands including USA Gold and Sonoma, Imperial Chief Executive Officer Gareth Davis said on a conference call today.

The fourth-largest U.S. cigarette maker gives Bristol, England-based Imperial 3.7 percent of the world's most profitable market. Smoking in Britain will decline this year because of a ban. Commonwealth's brands have gained a 13 percent share of the U.S. discount market since the company started selling them in 1993, and haven't lost any smoker lawsuits.

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