Imperial Brands PLC has announced that it has completed the sale of its worldwide premium cigar businesses (Premium Cigars) for €1.23 billion.
The tobacco giant will use €1.1 billion from this amount for debt reduction.
In April of this year, Imperial Brands announced plans to sell the USA unit of Premium Cigars to Gemstone Investment Holding for €185 million, and the rest to Allied Cigar Corp for €1.04 billion.
Payment Plan
Out of the total, the payment of €88 million will be deferred for 12 months from the date of the closing of the deal (29 October), Imperial Brands said.
In addition, another €69 million will be paid upon the transfer of the Dominican Republic factory, which is expected to close in 2021.
In September 2020, the company announced a further six-month deferral of payment of €250 million to allow the buyers to finalise long-term financing arrangements.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
