What’s Happening?
In a move that will surely make cigar aficionados across the globe take notice, Scandinavian Tobacco Group (STG) has announced they have agreed to purchase Alec Bradley Cigars for $72.5 million. This is big news in the world of premium cigars, and here’s what you need to know.
The Deal
The deal between STG and Alec Bradley was announced on February 22nd and it will become official after a vote by shareholders. The acquisition includes all of the brands owned by Alec Bradley, including their most popular line, Black Market Esteli. STG also plans to acquire all of Alec Bradley’s inventory, equipment, machines and other assets associated with production.
The Reasoning Behind the Acquisition
STG has been slowly acquiring cigar companies for years now as part of its expanding portfolio, but this is one of their bigger deals yet. It seems that STG was looking to strengthen its market share in North America as well as gain access to a larger customer base thanks to the popularity of Alec Bradley cigars. In addition, Alec Bradley’s presence in certain markets such as Europe should help increase sales for STG in those regions as well.
What Does This Mean For Cigar Smokers?
While there may be some changes in terms of packaging or pricing down the road, cigar smokers should expect business as usual when it comes to the quality of their favorite cigars from both companies. At least that’s what we can hope for! STG CEO Niels Frederiksen said “Alec Bradley is an excellent brand with great potential…We look forward to continuing its journey together with them.” We can only assume he means business as usual!
Conclusion:
In short, cigar fans can rest easy knowing that one of their favorite brands just got acquired by one of the biggest names in tobacco products—Scandinavian Tobacco Group (STG). What does this mean for cigar smokers? Hopefully not much—other than maybe more access to some of their favorite cigars from both companies around the globe! So light up your next stogie with confidence knowing that there are still plenty out there who appreciate a good smoke!
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