Scandinavian Tobacco Group (STG) said it has agreed a deal to buy “substantially all assets” of Alec Bradley Cigar Distributors and associated companies for $72.5 million (about £61m) on a debt and cash free basis.
STG said the Alec Bradley brand will be a material addition to the company’s portfolio of premium cigars and bring it one step closer to becoming the undisputed and sustainable global leader of cigars.
“Through this bolt-on acquisition, we will expand our portfolio of highly regarded premium cigars in the US and international markets, delivering material value to our shareholders,” Niels Frederiksen, STG chief executive, commented.
“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”.
Alec Bradley is a family-owned business established in 1996 by entrepreneur Alan Rubin. Based in Fort Lauderdale, Florida, the company reported annual net sales in 2021 of $25 million and an EBITDA margin before special items of 24 per cent. Both net sales and EBITDA margin improved during 2022.
Brands within the Alec Bradley portfolio include among others Prensado, Kintsugi, Alec Bradley Double Broadleaf, Fine and Rare and Black Market.
The acquisition, which is expected to be closed shortly, will be fully financed by cash at hand and debt.
