http://www.tobacco.org/newsfeed/org/conwood.rss Latest top tobacco news headlines en-us http://seekingalpha.com/article/81783-smokeless-tobacco-players-who-will-come-out-on-top?source=yahoo http://tobacco.org/news/267227.html Despite the 6.5% yield, RAI is trading around its 52-week low of $51.08. RAI has been taking hits in the headwinds of analyst downgrades and lowered guidance, but trading flat since May 1st. This is not the Conwood division's fault; the producer of the discount dip posted double digit volume growth, according to the Winston-Salem Journal. In fact, Conwood has huge growth opportunities, making up only 4% of revenues in 2006. RAI should follow in UST's footsteps and start to market more varieties of its discount products. Is it time to try to catch a bit of a, I don't know, let's call it a falling butter knife? Execs must think so after initiating a $350 million buyback program for the forward twelve months. RAI has a strong balance sheet; lots of cash, in other words, your 6.5% yield is safe. Now, time your entrance point right or cost-average down and you'll mint money. One last thought to ponder: Altria (MO), better known as Philip Morris USA, is testing its own smokeless tobacco product. If market penetration proves difficult for big MO, will either subsidiary be ripe for acquisition by the tobacco giant? Would not be a big surprise to me. Seeking Alpha blog network advertising@seekingalpha.com (Steve Farrington) Wed, 18 Jun 2008 04:00:00 GMT http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-07-2008/0004751302&EDATE= http://tobacco.org/news/259498.html Reynolds American Inc. (NYSE: RAI) today announced strong fourth-quarter and full-year 2007 earnings gains on both a reported and adjusted basis as increased pricing, moist-snuff volume and productivity more than offset lower cigarette volume and higher settlement expense. Results also reflect inclusion of the first full year of Conwood's results and that company's continued growth. RAI's full-year 2007 adjusted EPS of $4.57 was 12.6 percent higher than the prior year. For full-year 2008, RAI forecasts mid-single- digit percentage growth from 2007 adjusted EPS. PR Newswire Thu, 07 Feb 2008 05:00:00 GMT http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-28-2007/0004536283&EDATE= http://tobacco.org/news/242948.html Conwood Company, LLC today announced it is expanding its manufacturing facilities at its Taylor Brothers facility in Winston-Salem to provide additional manufacturing capacity and flexibility to meet the demands of the growing smokeless tobacco market. The new 88,000-square-foot facility will be located adjacent to the existing Taylor Brothers facility on Stratford Road. The new plant will create about 50 new jobs within the next 18 months; at full capacity it could employ up to 100 people. Production is expected to begin at the plant in the first half of 2008. PR Newswire Wed, 28 Feb 2007 05:00:00 GMT http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-31-2006/0004371603&EDATE= http://tobacco.org/news/225066.html Reynolds American Inc. (NYSE: RAI) today completed its $3.5 billion acquisition of a holding company that owns Conwood, the nation's second largest manufacturer of smokeless tobacco products, from business interests of the Pritzker family. The transaction, which was announced April 25, 2006, received required approval from the Federal Trade Commission on May 23, 2006. Reynolds American funded the $3.5 billion acquisition purchase price with the net proceeds of its private offering of $1.65 billion of senior secured notes and borrowings under its $1.55 billion senior secured term loan facility, each of which also closed today, as well as available cash. In addition, RAI entered into a $550 million revolving credit facility today. "We are excited about the growth prospects Conwood brings to Reynolds American," said Susan M. Ivey, RAI's chairman and chief executive officer. "Conwood's strong, well-positioned brands are gaining share in the growing moist snuff market, and its high margins will enhance our ability to continue to provide an excellent return to our shareholders." PR Newswire Wed, 31 May 2006 04:00:00 GMT http://biz.yahoo.com/ap/060531/reynolds_american_acquisition.html?.v=1 http://tobacco.org/news/225048.html Cigarette maker Reynolds American Inc. said Wednesday it completed a $3.5 billion purchase of the holding company that owns Memphis, Tenn.-based Conwood, a smokeless tobacco company. Reynolds American funded the acquisition with proceeds of $1.65 billion of senior secured notes and loans under its $1.55 billion senior secured term loan facility and available cash. Reynolds American plans to combine its Tucker, Ga.-based Lane Limited subsidiary with Conwood to drive growth in other tobacco products. AP Wed, 31 May 2006 04:00:00 GMT http://www.examiner.com/a-116775~Reynolds_American_Clears_Purchase_Hurdle.html http://tobacco.org/news/224661.html Reynolds American Inc., the nation's No. 2 cigarette maker, said Tuesday it has cleared a hurdle at the Federal Trade Commission toward its $3.5 billion purchase of chewing tobacco company Conwood. The company said the Federal Trade Commission granted it early termination of a waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. AP Tue, 23 May 2006 04:00:00 GMT http://www.newsobserver.com/280/story/442670.html http://tobacco.org/news/224589.html Reynolds American Inc., the nation's No. 2 cigarette maker, said Tuesday it has cleared a hurdle at the Federal Trade Commission toward its $3.5 billion purchase of chewing tobacco company Conwood. The company said the Federal Trade Commission granted it early termination of a waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. AP Tue, 23 May 2006 04:00:00 GMT http://biz.yahoo.com/prnews/060518/clth082.html?.v=33 http://tobacco.org/news/224347.html Reynolds American Inc. (NYSE: RAI) announced today the pricing of $625 million of its 7 1/4% Senior Secured Notes due 2013, $775 million of its 7 5/8% Senior Secured Notes due 2016, and $250 million of its 7 3/4% Senior Secured Notes due 2018 (collectively, the "Notes") offered in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. RAI intends to use the net proceeds from this offering, together with available cash and borrowings under a new senior secured term loan facility, to finance its previously announced acquisition of a to-be-formed holding company that will own Conwood Company, L.P., Conwood Sales Co., L.P., Rosswil LLC and Scott Tobacco LLC (collectively, "Conwood"). Conwood is the second- largest manufacturer of smokeless tobacco products in the U.S. PR Newswire Thu, 18 May 2006 04:00:00 GMT http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-11-2006/0004359340&EDATE= http://tobacco.org/news/223804.html Reynolds American Inc. (NYSE: RAI) announced today that it is planning a private offer of $1.65 billion aggregate principal amount of senior secured notes due 2013, 2016 and 2018 (the "Notes"). RAI intends to use the net proceeds from this offering, together with available cash and borrowings under a new secured term loan facility, to fund its previously announced agreement to acquire a to-be-formed holding company that will own Conwood Company, L.P., Conwood Sales Company, L.P., Rosswil LLC and Scott Tobacco LLC (collectively, "Conwood"). PR Newswire Thu, 11 May 2006 04:00:00 GMT http://www.businessweek.com/bwdaily/dnflash/apr2006/nf20060427_5426_db016.htm http://tobacco.org/news/223004.html Some analysts wondered after the announcement whether it might also make UST a more attractive acquisition target. The stock hit a month high of $44.92 the day Reynolds announced the Conwood deal. Cigarette companies are strong cash generators, and the most likely purchaser would seem to be Philip Morris, a unit of Altria and the maker of the dominant Marlboro cigarette brand. Both companies declined to comment, but after the price Conwood just pulled down, it would certainly be a costly target. Business Week Nanette_Byrnes@businessweek.com (Nanette Byrnes / NEWS ANALYSIS ) Thu, 27 Apr 2006 04:00:00 GMT http://online.wsj.com/article/SB114600904211435897.html?mod=hps_us_my_companies http://tobacco.org/news/222823.html Chew on this: Reynolds is paying 14 times Conwood's operating profit last year. With Reynolds on a multiple of seven times, that's a huge premium to its own valuation. Moreover, even if one generously factors in 10% annual sales growth over the next three years and synergies equal to 10% of Conwood's net sales, the return on investment looks barely above 6%. That's a big price to pay for lassoing a hedge. The Wall Street Journal Interactive Edition onlinejournal@wsj.com (Rob Cox, Edward Hadas and John Foley) Wed, 26 Apr 2006 04:00:00 GMT http://users2.wsj.com/lmda/do/checkLogin?mg=wsj-users2&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB114593629807435041.html%3Fmod%3DDFT http://tobacco.org/news/222819.html Reynolds American Inc. will become the first major cigarette maker in recent years to push into the smokeless-tobacco business, with its agreement to buy closely held snuff and chewing-tobacco company Conwood Co. for $3.5 billion in cash. The deal will thrust Reynolds, the Winston-Salem, N.C., maker of Camel and Salem cigarettes, into the No. 2 spot in the U.S. smokeless category by market share behind UST Inc. Reynolds is expected to look to expand its Camel cigarette brand by pumping out new smokeless products under that brand name. The Wall Street Journal Interactive Edition Wed, 26 Apr 2006 04:00:00 GMT http://dealbook.blogs.nytimes.com/?p=2324 http://tobacco.org/news/222659.html An analyst at Prudential Equity Group wrote Tuesday that Reynolds “paid through the nose for this business,” and Breakingviews followed up by calling the 14-times-operating-profit multiple a “big price” for a hedge against slowing cigarette sales. It would be easy to think that this all bodes well for the No. 1 smokeless tobacco maker, UST. With a market capitalization of nearly $7.3 billion, the company had already been pegged as a potential takeover candidate, even before the Conwood deal was announced. And Altria Group, the parent of Reynolds rival Philip Morris USA , wants to expand into other tobacco-related businesses. (Altria is widely assumed to have been a competing bidder in the Conwood auction.) But many analysts on Tuesday tried to snuff out speculation of an impending UST takeover. Judy Hong of Goldman Sachs wrote in a research note on Monday that “we believe this news could be negative for UST for a few reasons.” DealBook dealbook@nytimes.com Wed, 26 Apr 2006 04:00:00 GMT http://csnews.com/csn/news/article_display.jsp?vnu_content_id=1002385826&imw=Y http://tobacco.org/news/222650.html Reynolds American Inc. (RAI) broke into the smokeless tobacco category with the $3.5 billion agreement to purchase a holding company that owns Conwood, the nation's second largest manufacturer of smokeless tobacco products. Citigroup reported that the acquisition was a "good strategic move for RAI to secure the No. 2 position in the smokeless market and keep it out of the hands of its major competitor, PM (Phillip Morris) USA." "Conwood provides us with a significant, strategic platform within the growing moist snuff category that would have taken years to build," said Susan M. Ivey, chairman and chief executive officer of Reynolds American. "The moist snuff category has been growing at four percent to five percent for the past five years. Clearly, we're excited by this unique opportunity to gain immediate scale and strength in the category." Convenience Store News Wed, 26 Apr 2006 04:00:00 GMT http://www.nytimes.com/2006/04/26/business/26snuff.html?_r=1&oref=slogin http://tobacco.org/news/222625.html Reynolds expects the deal to add to earnings, but did not update its earnings forecast. Reynolds, which makes Camel and Kool cigarettes, ranks behind Philip Morris USA, a unit of the Altria Group, in the United States cigarette market. Reynolds said it would pay $300 million in cash and borrow $3.2 billion. A Prudential analyst, Robert T. Campagnino, and a Citigroup analyst, Bonnie Herzog, said Reynolds paid a high price for Conwood. Ms. Herzog said she nonetheless thought it was a good strategic move for Reynolds because it collected 25 percent of the smokeless market and kept Conwood out of the hands of Philip Morris, the maker of top-selling Marlboro. "We believe this is an exciting opportunity," she said in a note to investors Tuesday. Ms. Herzog said the purchase would let Reynolds control the price of Conwood's deeply discounted Grizzly smokeless tobacco. AP Wed, 26 Apr 2006 04:00:00 GMT