Scandinavian Tobacco Group (STG) has revealed that it will acquire Thompson and Co. of Tampa, Inc., also known as Thompson Cigar, for a purchase price of USD $62 million. This deal is expected to close by the end of March 2018.
Niels Frederiksen, CEO of STG, commented: “I am pleased to announce this acquisition, which strengthens our position in the online retail channel in the US. Our existing U.S. online retailer Cigars International will–in combination with Thompson–be able to deliver an unmatched range of premium cigars at the highest level of service to the U.S. consumers. At the same time we foresee significant cost synergies to the benefit of our customers and shareholders.”
Bob Franzblau, CEO of Thompson and Co., added: “Having spent 58 years making Thompson Cigar one of the most respected mail order cigar businesses in the country, it is now time to hand over the reins to a new owner that can continue to serve the long-term interest of the company. Becoming part of Scandinavian Tobacco Group will ensure an exciting future of opportunity for our employees, our customers and our suppliers.”
Thompson and Co. was founded in 1915 and has been a family-owned business based in Tampa, FL. Its annual net sales of USD $100 million and it employs 185 people. This acquisition will give STG access to a large database of premium cigar customers as well as a retail store and call center.
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