Imperial Brands PLC has announced it is targeting divestiture opportunities in its business portfolio. The company announced it is planning £2 billion ($2.7B) over the next 12 to 24 months.
In a recent interim earnings report, Imperial Brands Chief Executive Alison Cooper commented, “As we sharpen our focus on the brands, products and markets that are central to our strategy, we are progressing opportunities for divestments, initially targeting proceeds of up to £2 billion within the next 12-24 months. This will further simplify the business, enhance performance and release capital to pay down debt, deliver returns to our shareholders and, where appropriate, invest in our growth agenda.”
The company did not mention specific divisions, but Imperial Brands is the parent company of Tabacalera USA (which Altadis U.S.A is a part of) and owns a 50% stake in Habanos S.A. Last month the process started when Imperial Brands announced it was exiting the OTP space (Roll Your Own Tobacco, Cigarette Paper, Tubes, and other accessories) in the U.S. market.
Many believe that Imperial Brands PLC’s focus will remain on the cigarette market as well as emerging Next Generation Products (NGP).