Philip Morris International (PMI) has agreed to purchase privately owned Colombian cigarette manufacturer Productora Tabacalera de Colombia (Protabaco) for USD 452 million.

Protabaco is the second largest tobacco company in Colombia, with an estimated 2008 volume of 6.1 billion cigarettes and an approximate market share of 31.8 per cent. The company reported net revenues of approximately USD 107.6 million in 2008. Its leading brands include Mustang, Premier and President.
In 2005, PMI acquired Compañía Colombiana de Tabaco (Coltabaco). Since then, PMI has continued to invest in Coltabaco, its employees and its infrastructure, as well as in social and economic programmes in Colombia, including investments in the tobacco growing sector.
The transaction, which is subject to competition authority approval and final confirmatory due diligence, is projected to be immediately marginally accretive to PMI’s earnings per share and is expected to close within the next six months. (pi)