Press releaseJul 2, 1999
Swedish Match acquires premium cigar company in the US
Swedish Match has entered into a
definitive agreement to acquire El Credito Cigars, based in
Miami, Florida, which produces premium handmade cigars
principally for the U.S. market.
The company’s largest and
most well-known brand is La Gloria Cubana, one of the most
exclusive cigars sold in the U.S. The company’s other brands
include "El Credito", "El Rico Habano" and
"La Hoya Selecta". The purchase includes production
units in the Dominican Republic and Miami, Florida, with a total
of 350 employees.
El Credito’s annual sales
during 1998 were approximately USD 11 million. This acquisition
will have a slight positive effect on Swedish Match's earnings
per share and cash flow.
Ernesto Perez-Carillo, president
of El Credito, will continue as president, as well as assist
Swedish Match in developing its premium cigar operations in the
global market.
At the end of March, Swedish Match
acquired a major mass-market operation in the U.S. that made
Swedish Match the second-largest cigar producer in the world.
With the acquisition of El Credito Cigars, Swedish Match is now
also established in the premium segment of the North American
cigar market.
"The acquisition of El
Credito is part of our strategy of concentrating on cigars and
smokeless tobacco products," says Lennart Sundén, President
and CEO of Swedish Match. ""The acquisition will enable
Swedish Match to benefit from El Credito’s expertise and
experience in the premium cigar segment," comments Lennart
Sundén.
"We are pleased to have
Ernesto Perez-Carillo join Swedish Match to continue the
tradition of exceptional quality and value established by
Ernesto's father", said Lennart Sundén.
Closing of the transaction is
planned to take place in August.
Swedish Match is an international
group with its head office in Stockholm. The company produces an
extensive range of tobacco products, matches and disposable
lighters. The products are sold in 140 countries. The
company’s total sales during 1998 amounted to approximately
MSEK 8,200. The Swedish Match share is listed on the Stockholm
Stock Exchange (SWMA) and New York’s Nasdaq Exchange (SWMAY)
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