Convenience Store News

JUL 2015

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14 Convenience Store News | JULY 2015 | WWW.CSNEWS.COM INDUSTRYROUNDUP R eynolds American Inc. (RAI) completed its roughly $27-billion acquisition of fellow tobacco company Lorillard Inc. on June 12, just one month shy of the one-year mark. On the same day, RAI also closed the deal's related divestiture transactions with ITG Brands LLC, a subsidiary of Imperial Tobacco Group plc, for approximately $7.1 billion. With all the deals now sealed, RAI remains the No. 2 player in the U.S. tobacco space — bolstered by Lorillard — and ITG Brands emerges as the new No. 3. Meanwhile, Richmond, Va.-based The Altria Group Inc. retains its position at No. 1. As a result of the acquisition, Lorillard is a wholly owned subsidiary of Winston-Salem, N.C.-based RAI. The No. 2's operating companies now have key brands across major industry categories: Newport, Camel, Pall Mall and Natural American Spirit in combus- tible cigarettes; Grizzly in smoke- less tobacco; and VUSE in the vapor market. "As a result of this acquisition, Reynolds American has a signifi- cantly strengthened, balanced and diversified portfolio of iconic brands across all key categories — the most balanced in the industry," said Susan M. Cameron, RAI's president and CEO. "The transaction supports RAI's efforts to lead the transformation of the tobacco industry. The syner- gies, improved operational efficiencies and higher Tobacco's New Big Three Is Official Reynolds American and Lorillard finalized their merger on June 12 NH-2700 BY: NAUTILUS HYOSUNG SC-12 BY: EXCEL ® ®

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