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JAPAN

JT acquires Indonesia’s KDM kretek company

04 Aug 2017. Japan Tobacco will take a nationwide stake in the Indonesian kretek cigarette market with the USD 677 million (EUR 571 million) acquisition of PT Karyadibya Mahardhika (KDM) and its distributor, JT said.

JT is mainly involved in the conventional cigarette market in Indonesia. Acquisition of KDM and distributor PT Surya Mustika Nusantara (SMN) will give JT a national presence in kreteks. “This is our first significant acquisition in South East Asia and an excellent opportunity for us to further develop our business in a thriving region,” said Mutsuo Iwai, JT executive vice president and president of the tobacco business. The sale is expected to be completed in the fourth quarter and includes assumption of USD 323 million in debt, JT said.

KDM operates nine kretek factories in Java and markets them nationally through SMN. The two companies employ 7,500 people, JT said.