Scandinavian Tobacco Group Completes Royal Agio Cigars Acquisition

Scandinavian Tobacco Group to Acquire Royal Agio Cigars

Scandinavian Tobacco Group (STG) has completed its acquisition of Royal Agio Cigars. The acquisition was completed on Jan. 2, 2020 following the completion of the statutory works councils consulation process in the Netherlands and clearance from the relevant competition authorities. From Highlands Beheer B.V., STG has acquired all shares of Agio Beheer B.V. (“Royal Agio”), the holding company of the Royal Agio Cigars group. Royal Agio Cigars is the makers of Balmoral and San Pedro de Macoris premium cigar brands in addition to a portfolio of machine-made cigars including Panter, Panther and Meharis.

Royal Agio Cigars is based in Duizel, The Netherlands and has approximately 3,200 full-time employees. Royal Agio’s reported annual net sales for the full year of 2018 were EUR 133 million (DKK 1 billion) with an EBITDA of EUR 18 million. With this acquisition, Royal Agio Cigars will provide STG with a strong product portfolio that can be leveraged in key European machine-made cigar markets. With Royal Agio Cigars, STG will be able to secure leading positions in France, Belgium and The Netherlands and will be able to significantly improve its position in other key cigar markets including Spain and Italy.

“I am very pleased that we have completed the acquisition of Royal Agio, which significantly strengthens our position in several key machine-made cigar markets in Europe and enables us to deliver an even more attractive range of cigars of the highest standards to our consumers,” said Niels Frederiksen, CEO of STG. “The acquisition leaves Scandinavian Tobacco Group as a bigger, more competitive and more profitable company better suited to pursue growth and create value for our shareholders.”