Reynolds American sells Natural American Spirit brand for $5 billionStaff 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.
Selling Japan Tobacco Group is buying Reynolds brand
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. ■