Scandinavian Tobacco Group has agreed to acquire the Alec Bradley cigar business in a deal valued at $72.5 million.The transition is expected to close by the end of the month, according to a press release from Scandinavian.
In 2022, Alec Bradley sold almost 10 million cigars – an increase of 5% versus 2021 – primarily in the U.S. and Canada, but also in international markets.
Brands within the Alec Bradley portfolio include Prensado, Kintsugi, Alec Bradley Double Broadleaf, Fine and Rare and Black Market.
Scandinavian Tobacco Group’s most recent acquisition was of the Room101 brand in June 2022.
“The acquisition of the Alec Bradley cigar business is another important step toward our ambition of becoming the undisputed and sustainable global leader in cigars,” Scandinavian CEO Niels Frederiksen said in a press release. “Through this bolt-on acquisition, we will expand our portfolio of highly regarded premium cigars in the U.S. and international markets, delivering material value to our shareholders. We will also leverage the Alec Bradley brand portfolio to deliver increased excitement to the handmade cigar category through product innovation and brand activations, benefitting both the cigar enthusiasts and our trade partners”.