Altria Buys Maker of Nat Sherman Cigars
January 17 2017 - 10:46AM
Dow Jones News
By Joshua Jamerson
Altria Group Inc. said it acquired the privately held maker of
Nat Sherman cigars and cigarettes, expanding Altria's offerings as
it faces increasing competition.
Financial terms of the deal weren't disclosed.
Sherman Group Holdings LLC's cigarettes are manufactured in
Greensboro, N.C., and the company operates a flagship store in New
York. Marty Barrington, Altria's chairman and chief executive, said
the deal would give Nat Sherman, whose cigarettes are currently in
limited distribution throughout the U.S., access to Altria's retail
distribution, brand management and consumer expertise.
The move comes as Altria, the U.S.'s largest tobacco company,
has been facing stronger competition from No. 2 rival Reynolds
American Inc. On Tuesday, British American Tobacco PLC said
Reynolds had agreed to its sweetened acquisition offer of $49.4
billion for the 57.8% of Reynolds that it doesn't already own, a
deal that will create the world's largest listed tobacco company by
revenue and market value.
Altria stock, which has climbed 19% in the past 12 months, edged
up 0.9% in morning trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 17, 2017 10:31 ET (15:31 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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