Merger of STG and Swedish Match

Oct 2010
Deal Value:
Not disclosed
Private process

Scandinavian Tobacco Group (STG) produces and cells cigars, pipe tobacco and fine cut tobacco in more than 115 countries around the world and has a number of strong brands. In 2009 the turnover of the Group was DKK 2.4 billion. The Group has approximately 3,400 employees and is headquartered in Denmark.Swedish Match (SM) produces and sells market-leading brands in smoke-free tobacco products, cigars, lighters and matches. SM will contribute all its cigar business (with the exception of its US mass market cigars and the minority stake in Arnold André) as well as its pipe tobacco and accessories business.
The combination will form the world’s second largest cigar company and strengthen STG’s existing position as world leader in pipe tobacco. The new company will be a leading player in a number of markets in Europe within cigars and pipe tobacco and will hold about 30% of the US premium cigar market. The combined entities forming part of the new company realised in 2009 revenues of € 690m, a normalised EBITDA of € 140m and a combined cigar volume of more than 2.5 billion cigars. STG will hold 51% ownership of the new company and SM will hold 49%.