Imperial Brands’ premium cigar assets were sold in two different transactions, split between two different entities–Gemstone Investment Holding, LTD, and Allied Cigar Corporation, S.L. Gemstone Investment Holding bought the U.S. side of the business, including Tabacalera USA, Altadis U.S.A., JR Cigar, Serious Cigars, the Casa de Montecristo chain, and Cigars.com. Allied Cigar Corporation S.L. purchased the remaining assets, including the 50 percent stake in Habanos S.A. The two entities will not be paying Imperial the total due amount all at once; part of the payment will be deferred, per the following from the press release:
“As announced on 27 April 2020, €88 million of consideration will be deferred for 12 months from today’s close, with a further €69 million deferred and contingent upon the transfer of the Dominican Republic factory, which is expected to complete in 2021. As subsequently announced on 28 September, Imperial has provided a further six-month deferral of €250 million while the buyers finalise long-term financing arrangements.”
Imperial Brands will keep its machine-made cigar business and brands, including Backwoods.
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