Tobacco company seeks buyer for cigar business

Thu, 02 May 2019 | BUSINESS SALE

Tobacco company Imperial Brands has revealed plans for the sale of its cigar business, which will be split from the group to help reduce debt and increase the funds available for investment.

The sales process for Premium Cigars is also reportedly part of the company's wider sale programme and company simplification agenda, from which it hopes it will gain £2 billion by May 2020.

The FTSE 100-listed tobacco giant added that the sale of the cigar business was not as a result of a lack of profit from the division, but simply that the company wants to redefine its market and ensure it's focusing its money and energy in one direction.

"Premium Cigars has performed well over a number of years with good revenue and profit growth; however, it is a unique luxury business with a different consumer base and route to market relative to Imperial's other businesses," a spokesperson said. "The sale of the business provides an attractive opportunity to realise shareholder value."

The company will now seek an appropriate buyer for the company via advisory firm AZ Capital, although it is yet to publish any financial figures and warns that there is no certainty that a transaction will definitely take place.

Despite this, Imperial Brands did confirm that it's making significant progress in other areas of its simplification schedule, but added that tobacco valuations have come under pressure in recent months and that each asset will remain part of the group until the "appropriate value" is realised.

So far the company has achieved additional funds of £280 million from the sale of a portfolio of other tobacco products in the US.


Share this article



Latest Businesses for Sale

Industrial Parts Distribution
UK Wide

This business has established a strong brand within its market place in over 20 years of trading. The owners have built a strong team to operate the business on a day to day basis. Offers invited.

Asking Price: Offers Invited
Turnover: £5,000,000

LEASEHOLD


Glass Manufacturer
Scotland, UK

Designer and manufacturer of bespoke glass products such as splashbacks, shower enclosures, balustrades, staircases, curved glass, mirrors, reception desks, worktops, tables and giftware. Extensive in-house design and glass manufacturing capabilities...

Asking Price: Offers Invited
Turnover: £640,000

LEASEHOLD


Electrofusion Welding Machines Design & Supply
UK Wide

Utilises state-of-the-art machinery and considerable in-house expertise to develop highly effective and reliable products. Globally recognised brand, with an excellent reputation. Offers invited.

Asking Price: Offers Invited
Turnover: £8,800,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
18
 
Nov
 

Kitwave acquires Alpine Fine Foods | BUSINESS SALE

Independent wholesaler Kitwave has acquired Alpine Fine Food...

 
15
 
Nov
 

Carpetright agrees to shareholder takeover deal | BUSINESS SALE

Carpetright has agreed a deal to be taken over by its larges...

 
14
 
Nov
 

Scale manufacturer taken over in MBO | MBO/MBI

Weighing scale manufacturer Marsden Weighing Group has been ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources