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Reynolds American sells Natural American Spirit brand for $5 billion

Staff writer ▼ | September 30, 2015
Reynolds American said the international rights to the Natural American Spirit brand name and associated trademarks, along with the companies that distribute and market the brand outside the U.S., will be sold to the Japan Tobacco Group (JT Group) in an all-cash transaction with a value of approximately $5 billion.
Reynolds American
Selling   Japan Tobacco Group is buying Reynolds brand
The purchase does not include the rights to the Natural American Spirit brand name and associated trademarks in the U.S. market, U.S. duty-free locations, U.S. territories or in U.S. military outlets, all of which will be retained by Santa Fe Natural Tobacco Company, Inc. Santa Fe is a wholly owned subsidiary of RAI.

The international companies being sold employ about 280 people, primarily in Europe and Japan. Those companies distribute and market Natural American Spirit additive-free and organic styles of cigarettes and roll-your-own tobacco primarily in European and Asian markets. The brand’s largest markets are Japan, Germany and Switzerland.

Natural American Spirit sells at a premium price in each of the markets in which it competes, just as it does in the U.S. market.The transactions must be approved by regulatory authorities in a number of countries.

The companies are working to attain regulatory approvals by early 2016, and the transaction will close thereafter.


 

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