Scandinavian Tobacco Group said Thursday it has agreed a deal to acquire Danish firm Mac Baren Tobacco Company from Halberg for DKK 535 million (£60.67m).
A family-owned business founded in 1826, Mac Baren’s portfolio includes pipe tobacco brands such as Mac Baren, Amphora and Holger Danske as well as fine-cut tobacco brands like Amsterdamer, Choice and Opal. The company also produces and sells nicotine pouches with the brands Ace and Gritt.
Mac Baren’s products are sold in 74 countries with the majority of net sales generated in the US, Denmark and Germany. Other key markets include the UK, France, Spain and Italy.
The company is based in Svendborg, Denmark with production facilities in Denmark and in Richmond, Virginia in the US. The company has approximately 200 full-time employees.
“I am very pleased that we have taken this important step to strengthen our smoking tobacco business with the acquisition of Mac Baren,” Niels Frederiksen, chief executive of Scandinavian Tobacco Group, said.
“The acquisition will contribute to our already well-established position on the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers. The combination with our existing business is expected to deliver meaningful synergies when fully integrated and good value for our shareholders.”
Torben Sørensen, chairman of the board of Halberg, said: “Scandinavian Tobacco Group is acquiring a strong company with a lot of know-how, loved brands and skilled employees. Since its inception in 1826, a central part of Mac Baren's DNA has been its focus on new opportunities and ensuring optimal competitiveness. In light of this, it is timely prudence to now let the company become part of a stronger constellation. It is a particular pleasure that ownership has been retained in Danish hands. This is the best possible solution for both Mac Baren and Halberg.”
Mac Baren’s reported annual net sales in its 2024 fiscal were DKK 723 million with a reported EBITDA of DKK 85 million. Nicotine pouches accounted for close to 20 per cent of net sales with a small negative contribution to EBITDA.
