The transaction is subject to approval by the South African competition authority and is expected to be completed during the second half of 2009. SMSA is the South African leader in OTP (other tobacco products), with a number one position in the pipe tobacco category through the well-recognised Boxer and Best Blend brands; SMSA also has a number two position in the nasal snuff category with its Taxi brand. In 2008 the pipe tobacco and nasal snuff businesses had total sales of ZAR 687 million.
“This agreement with Philip Morris International is in line with Swedish Match’s strategy to focus on smoke-free tobacco, cigars and lights products. SMSA will continue to be a strong player in South Africa and we believe that PMI will benefit significantly from its deeply-entrenched and highly-recognised brands and its dedicated people,” said Lars Dahlgren, President and CEO of Swedish Match.
SMSA will continue to distribute lighters, matches and cigars for Swedish Match. (ci)