Scandinavian Tobacco Group (STG) has announced it is to purchase European cigar company Royal Agio, in a deal valued at around £186m (EUR 210m).
The transaction is subject to regulatory approval and the satisfactory conclusion of a statutory employee consultation process in the Netherlands.
Based in the Dutch village of Duizel, Royal Agio produces brands such as Mehari´s, Panter and Balmoral. The company has approximately 3,200 full-time employees. It reported full year net sales of EUR 133m for 2018.
The move will give STG leading positions in France, Belgium and The Netherlands, and significantly improve its standing in key cigar markets such as Spain and Italy.
STG boss Niels Frederiksen commented: “If completed, the acquisition will be an important step in our ambition of becoming the global leader in cigars, as it significantly strengthens our position in several key machine-made cigar markets in Europe and enables us to deliver an attractive range of cigars of the highest standards to our consumers.”