Gurkha Cigars has announced it is not moving forward with its acquisition of the American Caribbean Cigars factory and that instead, the company plans to build its own factory.
Last May, it was announced that Gurkha would be acquiring the American Caribbean Cigars factory. It’s a factory that Gurkha has had a relationship with for several years. The transaction was expected to be finalized in the first quarter of 2018. In a press release today, the company said: “the deal has fallen through and will not proceed”. Gurkha also stated that in reviewing the plans, it made better sense to build its own factory.
As for the new factory, Gurkha is projecting it will be a 100,000 square foot facility and will handle manufacturing of its premium international cigars. The company is currently scouting locations and it is expected to be a two-year project before a new facility is opened.