Only hours after the cigar industry’s first major acquisition of 2018, comes news of the second. Today, following the announcement of Quality Importers acquiring XIKAR, Scandinavian Tobacco Group (STG) has announced it has entered into an agreement to acquire Thompson and Co, the catalog retail giant known as Thompson Cigar. The purchase price for Thompson is $62 million dollars.
Thompson is a family owned business founded in 1915 and is based in Tampa, Florida. It’s a massive acquisition for STG. Thompson has net sales of over 100 million dollars and employs 185 employees.
STG is the parent company of General Cigar Company as well as retail giant Cigars International. The acquisition includes Thompson’s auction and retail websites as well as a retail store and a call center facility in Tampa. In addition to absorbing a competitor in Thompson, Cigars International gets many of the predicate blends Thompson had single shop exclusives on.
Scandinavian Tobacco Group CEO Niels Frederiksen commented, “I am pleased to announce this acquisition which strengthens our position in the online retail channel in the US. Our existing US online retailer Cigars International will in combination with Thompson be able to deliver an unmatched range of premium cigars at the highest level of service to the US consumers. At the same time we foresee significant cost synergies to the benefit of our customers and shareholders.”
The acquisition is expected to close in March 2018.
I wonder what percentage of the online tobacco business these two will represent? Will monopoly implications exist? Just wondering?
Don’t think so now. You still have JR Cigar and Famous Smoke Shop out there – who are still quite larger. The percentage question is one I don’t have an answer on yet, but its one I’d like to find out.
Oh yes, JR Cigar and Famous Smoke Shop. I didn’t remember them when considering my comment. I guess it’s my perception that CI and Thompson gives STG an even more significant foot hold on the on-line cigar business. I’m not diligent enough to do the deep dive to get the real numbers. The evolution that this business is going thru is amazing to watch. Consumers can celebrate and be cautious at the same time. Thank you for everything, Dr. Cooper. Long live the B&M! I remember you from the Dog Watch days. I love the podcasts. Smooth draws and RIP Gary “Doc” Laden!
is there any news on how – if the brands Thompson carried will be continued at CI
Thompson Cigar Sells For $62 Million - Gold Leaf Cigars
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