Press releaseMay 8, 2000
Swedish Match to acquire Brasant Enterprises
- Leading South African
tobacco distributor for Tobacco Specialty, Convenience,
and Hotel/Restaurant classes of trade
- Allows Swedish Match to
cover both wholesale and retail segments for all its
products
- Will facilitate the
introduction and distribution of Swedish Match products,
including snuff, in Southern Africa
Swedish Match AB (OM/Stockholm
Stock Exchange: SWMA, NASDAQ: SWMAY) announced today that they
have signed definitive agreements for Swedish Match to acquire
the business of Brasant Enterprises (PTY) Ltd. Brasant, formed in
1994 and based in Cape Town, South Africa, has a sales force of
28 people. The company also has offices in Johannesburg, Durban,
and Windhoek, Namibia. Brasant had invoiced sales of close to 60
MSEK in 1999.
Brasant current distributes a
number of Swedish Match and third party products, including
cigars, pipe tobacco, matches, and lighters, and is the
nation’s leading tobacco distributor in Specialty Tobacco
shops, convenience stores and Hotels/Restaurants.
Swedish Match will acquire the
sales force and administration of Brasant, along with the
business name, inventories and other assets/liabilities. The
present company management will continue to be active in the
company. Swedish Match will continue to sell and distribute other
companies’ tobacco and accessory products in addition to its
own product portfolio.
Lennart Sundén, Swedish
Match’s President and CEO said, "In Brasant we
will further strengthen our presence in the South African and
neighboring Southern African markets. Last year we acquired the
snuff and tobacco company, Leonard Dingler. With the acquisition
of Brasant, we further focus our efforts in this growing market,
and strengthen our distribution network. Brasant will also
provide us with a solid platform to both expand our distribution
of current products and to introduce new products in southern
Africa."
This acquisition will be slightly
earnings enhancing from the year 2000, and will be financed
through existing liquid funds.
The transaction is subject to
regulatory approvals, and other customary conditions.
FORWARD LOOKING STATEMENTS:
Certain matters discussed within this press release may
constitute forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Although
management believes that its financial expectations are based on
reasonable assumptions, it can give no assurance that its
expectations will be achieved. The following factors, among
others, could cause the Company's financial performance to differ
materially from that expressed in such statements: (1) changes in
consumer preferences resulting in a decline in the demand for and
consumption of tobacco, (2) political disturbances, (3)
additional governmental regulation of tobacco or further tobacco
litigation, and (4) enactment of new or significant increases in
existing excise taxes.
Swedish Match is an
international group with headquarters in Stockholm, Sweden. The
company manufactures a broad range of tobacco products, matches
and disposable lighters which are sold in approximately 140
countries. Sales for the twelve month period ending March 31,
2000 amounted to approximately 9,600 MSEK. Swedish Match is
listed on Stockholm Stock Exchange and on NASDAQ.
For further information, please
contact:
| Lennart
Sundén, President and Chief Executive Officer |
office |
+46 8 658
01 75 |
| |
|
|
| Sven
Hindrikes, Executive Vice President and |
office |
+46 8 658
02 82 |
| Chief
Financial Officer |
mobile |
+46 70
567 41 76 |
| |
|
|
| Bo Aulin,
Senior Vice President, Secretary |
office |
+46 8 658
03 64 |
| and
General Counsel |
mobile |
+46 70
558 03 64 |
| |
|
|
| Emmett
Harrison, Vice President, Investor Relations |
office |
+46 8 658
01 73 |
| |
mobile |
+46 70
938 01 73 |
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