| Thu 26 May 2011, 8:55 | | BTI - British American Tobacco p.l.c. - Agrees to acquire Protabaco |
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BTI
BTI
BTI - British American Tobacco p.l.c. - Agrees to acquire Protabaco
British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")
British American Tobacco agrees to acquire Protabaco
British American Tobacco has agreed to acquire a 100 per cent interest in
privately owned Productora Tabacalera de Colombia, S.A.S. (Protabaco), the
second largest cigarette company in Colombia, for an enterprise value of US$452
million.
On completion, the acquisition will elevate British American Tobacco from third
to second place in Colombia, Latin America`s fourth largest cigarette market
with total industry sales of around 17 billion cigarettes in 2010.
Mark Cobben, British American Tobacco`s Director, Americas, said: "This
investment will strengthen and complement our position in an important market
and fill a strategic gap in our Americas region."
Protabaco sold 5.5 billion cigarettes in 2010 - accounting for almost one third
of the domestic market. Its biggest brand, Mustang, is the country`s second
best selling cigarette with a retail share around 18 per cent.
Funding for the transaction will be from existing British American Tobacco
resources.
The transaction represents a multiple of 11.3 times Protabaco`s US$40 million
domestic 2010 EBITDA on net domestic revenues of US$110 million.
The transaction is subject to competition authority approval and final
confirmatory due diligence.
Notes to editors
* British American Tobacco is the world`s second largest publicly quoted
tobacco group by global market share with brands sold in more than 180
markets. In 2010 its subsidiary companies produced 708 billion cigarettes
and employed more than 60,000 people. Leading global brands are Dunhill,
Kent, Pall Mall and Lucky Strike.
* The US$452 million agreed price is on a debt and cash free basis meaning it
will be reduced by the amount of any Protabaco net debt or increased by any
net cash in the business.
* British American Tobacco is being advised by Rothschild.
26 May 2011
Sponsor: UBS South Africa (Pty) Ltd
Date: 26/05/2011 08:55:38 Produced by the JSE SENS Department.
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