Scandinavian Tobacco Group has completed the acquisition of the leading European cigar company Royal Agio Cigars.
The Danish company has reached an agreement in September with the shareholders of Royal Agio Cigars to acquire 100% share in the Dutch family-owned business for €210 million (£179 million).
The acquisition is expected to help STG secure leading positions in France, Belgium and the Netherlands and significantly improve the position in key cigar markets such as Spain and Italy.
STG will also be getting access to a strong product portfolio, which includes key brands such as Agio, Mehari’s, Panter and Balmoral, through the acquisition.
“I am very pleased that we have completed the acquisition of Royal Agio, which significantly strengthens our position in several key machine-made cigar markets in Europe and enables us to deliver an even more attractive range of cigars of the highest standards to our consumers,” said Niels Frederiksen, chief executive of STG.
“The acquisition leaves Scandinavian Tobacco Group as a bigger, more competitive and more profitable company better suited to pursue growth and create value for our shareholders.”
Founded in 1904, Duizel, the Netherlands-based Royal Agio is one of the four largest cigar manufacturers in the world, with net sales of €133 million in 2018.
STG is a globally operating manufacturer of cigars, pipe tobacco and fine-cut tobacco. Its portfolio includes over 200 global brands, such as La Paz, Café Crème, Cohiba, Macanudo and W.O. Larsen, and a number of strong local brands.
