Scandinavian Tobacco Group Completes Royal Agio Cigars Acquisition

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The acquisition was financed by cash at hand and debt. STG’s leverage ratio, defined as the net interest-bearing debt/EBITDA before special items, is expected to temporarily exceed the target of 2.5x. On the enterprise value, the transaction is valued at EUR 210 million (DKK 1,565 million). STG has announced that an integration planning period that will last at least three months from Jan. 2 will follow, where STG is expected to provide further financial details on the impact of the transaction.

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