Acquisitions and divestments
This is the strategic component that has generated most value for our shareholders.
The sale of cigarette operations in 1999 was a major strategic decision. These operations no longer suited the Group structure, given the requirements we imposed for profitable growth. Meanwhile, the sale released capital that was used to acquire cigar operations in the US, both premium and machine-made varieties. Our entire US cigar business is based on acquisitions. This also applies to our pipe tobacco operations in South Africa. The acquisition strategy is based on strengthening our market positions by acquiring operations that supplement our portfolio and create production, sales and distribution synergies.
Two significant acquisitions were implemented during the year, one in Europe and the other in the US. In September, the rapidly expanding Cigars International Inc. was acquired in order to supplement Swedish Match’s traditional US distribution channels for cigars. Through the acquisition of Bogaert Cigars in June, we further strengthened our position in Benelux, Germany and France.
The disposal of assets not required in the core business is another part of this strategy component. The sale of the company’s headquarters in Stockholm for 1.1 billion SEK must be viewed from this perspective.
1999
- Oct 6, 1999
- Swedish Match acquires snuff and pipe tobacco company in South Africa
- Sep 1, 1999
- El Credito Cigars acquisition completed
- Jul 2, 1999
- Final agreement regarding sale of Swedish Match's cigarette operations to Austria Tabak
- Jul 2, 1999
- Swedish Match acquires premium cigar company in the US
- May 31, 1999
- Austria Tabak to acquire Swedish Match's cigarette business
- May 31, 1999
- Swedish Match to sell the cigarette business to Austria Tabak for MSEK 4,800
- May 3, 1999
- General Cigar Holdings and Swedish Match announce closing of sale
- Mar 26, 1999
- Swedish Match to acquire mass market business of General Cigar Company, USA