Scandinavian Tobacco Group has on Sunday announced the acquisition of ‘substantially all assets’ of the Swedish company XQS International.
XQS is active in smoke-free products and its products are primarily sold in Sweden. It is one of Sweden’s leading players in tobacco-free nicotine pouches.
Scandinavian Tobacco Group has entered the fast-growing nicotine pouch category in the UK last October, introducing its first ever non-tobacco product Ström.
The transaction value consists of an upfront payment as well as an earn-out agreement. Assuming all targets are met, the total purchase price will be about DKK 150 million (£18m).
In 2022, XQS’ reported net sales were about DKK 50m with a low single-digit EBITDA margin and a total volume of 3 million cans.