Scandinavian Tobacco acquires substantially all of the assets of US-based Alex Bradley Cigar Distributors for USD 72.5 million, equivalent to approximately DKK 500 million, on a cash and debt-free basis. This is stated in a press release.

The purchase, which will be financed with cash and debt, is expected to close shortly.

Florida-based Alec Bradley had net sales of $25 million and an ebitda margin before special items of 24 percent in 2021. Both net sales and ebitda margin improved in 2022.

"The Alec Bradley brand is a significant addition to the company's portfolio of premium cigars and brings Scandinavian Tobacco Group one step closer to becoming the undisputed and sustainable global leader in cigars. Through this add-on acquisition, we will expand our portfolio of highly regarded premium cigars in the US and international markets", comments Niels Frederiksen, CEO Scandinavian Tobacco Group.

The acquisition is expected to be accretive to Scandinavian Tobacco's margins, earnings per share and returns.