Imperial Brands PLC has announced it is selling its worldwide premium cigar business. The move comes almost one year since the company first announced plans for divestiture opportunities.
Imperial Brands premium cigar business includes brands of Tabacalera Premium Cigars, Altadis U.S.A., JR Cigars, Casa de Montecristo retail operations, Santa Clara Cigars, and Imperial’s 50% stake in Habanos S.A. The company also owns two factories, Tabacalera de Garcia in the Dominican Republic and Flor de Copan in Honduras, both of which will be a part of the sale.
Imperial Brands will remain focused on its cigarette business.
According to a press release by Imperial “Premium Cigars has performed well over a number of years with good revenue and profit growth; however, it is a unique luxury business with a different consumer base and route to market relative to Imperial’s other businesses. The sale of the business provides an attractive opportunity to realize shareholder value.”
Imperial says the divestment program will pay down debt, and where appropriate invest in its own growth agenda. Under the program, Imperial expects to generate proceeds of £2 billion by May 2020, if not earlier.