Scandinavian Tobacco Group (STG), the world's largest pipe tobacco manufacturer which is 49 per-cent-owned by Swedish Match, has purchased Lane Limited, a unit of Reynolds American.

Danish company STG will pay USD 205 million (EUR 150.3 million) for Lane, which is based in Georgia, US, and makes a variety of tobacco products, including Kite and Bugler roll-your-own tobacco and Captain Black pipe tobacco.
"The Lane fine-cut tobacco brands, Bugler and Kite, will extend STG’s significant fine-cut tobacco market position in Scandinavia to include the position as leading fine-cut tobacco manufacturer in the US securing the company a significant platform to expand its business," said STG in a press release.
STG stated that Lane is expected to annually contribute an EBITDA of USD 45 million, and sales volumes of 525 tonnes of pipe tobacco, 980 tonnes of fine-cut tobacco, and 450 million little cigars. STG would then have an annual turnover of about Euro 800 million and sales volumes of more than 2.5 billion cigars, 2,175 tonnes of pipe tobacco, 3,170 tonnes of fine-cut tobacco, and 450 million little cigars.
The deal is expected to close in the first half of 2011.
Swedish Match acquired 49 per cent of STG on 1 October 2010, and contributed its US premium and European cigar businesses, as well as its pipe tobacco businesses, to the new entity. (pi)