CVC Said to Bid About $2 Billion for Danish Cigar Manufacturer
2014-11-28 15:32:08.711 GMT
By Kiel Porter and Manuel Baigorri
Nov. 28 (Bloomberg) -- The owners of Scandinavian Tobacco
Group A/S, a Danish manufacturer of cigars, are in talks with
private-equity firms about a possible sale of the company,
people with knowledge of the matter said.
CVC Capital Partners Ltd., Rhone Capital LLC and Pamplona
Capital Management LLP, are bidding for the Copenhagen-based
company, said six people, who asked not to be identified because
the talks are private.
The cigar company’s owners, Skandinavisk Holding A/S and
Swedish Match AB, hired JP Morgan Chase & Co. to look at options
for the business last year and explored an initial public
offering before deciding on a sale, said the people. The company
could fetch about $2 billion, the people said.
STG employs about 9,500 people in 20 countries and reported
earnings before interest, taxes, depreciation, and amortization
of 1.2 billion kroner ($201 million) on revenue of 5.9 billion
kroner for 2013, according to the company’s annual report.
The company, whose history dates back more than 200 years,
merged in 2010 with a cigar and pipe tobacco business of Swedish
Match, and is the world’s largest manufacturer of cigars and
pipe tobacco, according to its website.
Officials for STG, CVC, Pamplona, Skandinavisk and JPMorgan
declined to comment. A spokesman for Swedish Match confirmed
they had hired an investment bank but declined to provide
further detail. A spokeswoman for Rhone Capital didn’t respond
to telephone requests seeking comment.
For Related News and Information:
Global Tobacco Sales Growth May Decelerate in 2015: Primer
CVC Said to Near Agreement to Buy Finnish Insulation Maker Paroc
Top Stories:TOP <GO>
--With assistance from Aaron Kirchfeld in London.
To contact the reporters on this story:
Kiel Porter in London at +44-20-3525-2448 or
kporter17@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
Edward Evans at +44-20-3525-3190 or
eevans3@bloomberg.net
Jon Menon, Simone Meier
2014-11-28 15:32:08.711 GMT
By Kiel Porter and Manuel Baigorri
Nov. 28 (Bloomberg) -- The owners of Scandinavian Tobacco
Group A/S, a Danish manufacturer of cigars, are in talks with
private-equity firms about a possible sale of the company,
people with knowledge of the matter said.
CVC Capital Partners Ltd., Rhone Capital LLC and Pamplona
Capital Management LLP, are bidding for the Copenhagen-based
company, said six people, who asked not to be identified because
the talks are private.
The cigar company’s owners, Skandinavisk Holding A/S and
Swedish Match AB, hired JP Morgan Chase & Co. to look at options
for the business last year and explored an initial public
offering before deciding on a sale, said the people. The company
could fetch about $2 billion, the people said.
STG employs about 9,500 people in 20 countries and reported
earnings before interest, taxes, depreciation, and amortization
of 1.2 billion kroner ($201 million) on revenue of 5.9 billion
kroner for 2013, according to the company’s annual report.
The company, whose history dates back more than 200 years,
merged in 2010 with a cigar and pipe tobacco business of Swedish
Match, and is the world’s largest manufacturer of cigars and
pipe tobacco, according to its website.
Officials for STG, CVC, Pamplona, Skandinavisk and JPMorgan
declined to comment. A spokesman for Swedish Match confirmed
they had hired an investment bank but declined to provide
further detail. A spokeswoman for Rhone Capital didn’t respond
to telephone requests seeking comment.
For Related News and Information:
Global Tobacco Sales Growth May Decelerate in 2015: Primer
CVC Said to Near Agreement to Buy Finnish Insulation Maker Paroc
Top Stories:TOP <GO>
--With assistance from Aaron Kirchfeld in London.
To contact the reporters on this story:
Kiel Porter in London at +44-20-3525-2448 or
kporter17@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
Edward Evans at +44-20-3525-3190 or
eevans3@bloomberg.net
Jon Menon, Simone Meier