Imperial Tobacco to acquire brands from Reynolds American

BRISTOL, England — A subsidiary of Imperial Tobacco Group announced that it will acquire a portfolio of products from Reynolds American, which includes such U.S. cigarette brands as Winston, Kool and Salem, as well as the e-cigarette brand blu. The assets are being valued at $7.1 billion.

“This is a great opportunity to transform our US.. business and secure a significant presence in the world’s largest accessible profit pool. We plan to build a U.S. brand portfolio through national distribution and create a stronger, more competitive business. We intend to internationalize blu, the U.S. leader in e-cigarettes and enhance its growth opportunity with our know-how. We expect opportunities for cost optimisation through integration," said Alison Cooper, chief executive of Imperial Tobacco.

The cigarette brands that will be acquired in the United States are Winston, Maverick, Kool and Salem. The brands will combine with Imperial's existing U.S. portfolio at Commonwealth-Altadis, the company announced. Blu is the top brand of e-cigarette in the U.S. market, with a 45% value share of the market at retail, according to the company.

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