Imperial Tobacco Group PLC's subsidiary enters in to agreement to acquire assets from Reynolds

Tuesday, 15 Jul 2014 07:13am EDT 

Imperial Tobacco Group PLC:Subsidiary of Imperial Tobacco Group PLC (Imperial or the Company) enters into purchase agreement with Reynolds American Inc. (Reynolds).For acquisition of assets, including portfolio of US cigarette brands, Winston, Maverick, Kool, Salem and US and international e-cigarette brand blu, plus the national sales force, offices and production facilities currently owned by Lorillard Inc. (Lorillard, and together, Transaction).Assets are to be acquired for consideration of $7.1 bln (4.2 bln pounds) following proposed acquisition of Lorillard by Reynolds.After adjusting for present value of the expected tax benefits of $1.5 bln.Says net acquisition cost of $5.6 bln (3.3 bln pounds) implies a multiple of 6.9 times EBITDA.