Scandinavian Tobacco Group (STG) has today agreed on the terms and conditions for the acquisition of all the shares of Mac Baren Tobacco Company A/S from Halberg A/S.

Mac Baren is a family-owned business founded in 1826. Its portfolio consists of pipe tobacco brands such as Mac Baren, Amphora, and Holger Danske, as well as fine-cut tobacco brands like Amsterdamer, Choice, and Opal. The company also produces and sells nicotine pouches with the brands ACE and GRITT. Mac Baren’s products are sold in 74 countries, with the majority of net sales generated in the US, Denmark, and Germany. Other key markets include the UK, France, Spain and Italy. The company is based in Svendborg, Denmark, with production facilities in Denmark and Richmond, Virginia, in the United States. The company has approximately 200 full-time employees.

Mac Baren also owns the U.S.-based Sutliff Tobacco, which is known in premium cigar circles as a distributor of several boutique cigar brands. Notable brands handled by Sutliff include Matilde, Patina, Regius, and many others. Back in 2013, Mac Baren acquired Altadis’ pipe tobacco business and began operating it under that division’s original name, Sutliff Tobacco. There is no word on what the impacts will be on Sutliff’s distribution.

On a debt and cash-free basis (the enterprise value), the transaction is valued at DKK 535 million. The acquisition will be financed by cash at hand and debt. Closing of the transaction is expected shortly.

In a press release, Scandinavian Tobacco Group CEO Niels Frederiksen says: “I am very pleased that we have taken this important step to strengthen our smoking tobacco business with the acquisition of Mac Baren. The acquisition will contribute to our already well-established position on the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers. The combination with our existing business is expected to deliver meaningful synergies when fully integrated and good value for our shareholders.”

Chairman of the Board of Halberg A/S, Torben Sørensen, says: “Scandinavian Tobacco Group is acquiring a strong company with a lot of know-how, loved brands, and skilled employees. Since its inception in 1826, a central part of Mac Baren’s DNA has been its focus on new opportunities and ensuring optimal competitiveness. In light of this, it is timely prudence to now let the company become part of a stronger constellation. It is a particular pleasure that ownership has been retained in Danish hands. This is the best possible solution for both Mac Baren and Halberg.”

Mac Baren’s reported annual net sales (April/2024) were DKK 723 million, with a reported EBITDA of DKK 85 million. Nicotine pouches accounted for nearly 20% of net sales, with a small negative contribution to EBITDA. Scandinavian Tobacco Group says its full-year financial guidance for 2024, excluding the impact of the acquisition of Mac Baren Tobacco Company, remains unchanged. The economic impact of the acquisition will be communicated as soon as the integration planning period has been completed. The integration planning period is expected to take up to 120 days.