Philip Morris Plans $452M Acquisition
Philip Morris International Inc. (PMI) enters into an agreement to purchase 100 percent of the shares of privately-owned Colombian cigarette manufacturer, Productora Tabacalera de Colombia, Protabaco Ltda. (Protabaco), for $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 percent. The company reported net revenues of approximately $107.6 million in 2008. Its leading brands include Mustang, Premier and President.
"We are extremely pleased to reach this agreement with Protabaco in order to continue to build our business in this important and strategic market," says Miroslaw Zielinski, president of PMI's Latin America and Canada Region. "This strategically compelling transaction will provide PMI with an excellent opportunity to further develop Protabaco's strong brand portfolio and reflects the continuing confidence we have in the future of Colombia, its economy and the tobacco industry."
In 2005, PMI acquired Compania Colombiana de Tabaco S.A. (Coltabaco). Since then, PMI has continued to invest in Coltabaco, its employees and its infrastructure, as well as in social and economic programs 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.
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 percent. The company reported net revenues of approximately $107.6 million in 2008. Its leading brands include Mustang, Premier and President.
"We are extremely pleased to reach this agreement with Protabaco in order to continue to build our business in this important and strategic market," says Miroslaw Zielinski, president of PMI's Latin America and Canada Region. "This strategically compelling transaction will provide PMI with an excellent opportunity to further develop Protabaco's strong brand portfolio and reflects the continuing confidence we have in the future of Colombia, its economy and the tobacco industry."
In 2005, PMI acquired Compania Colombiana de Tabaco S.A. (Coltabaco). Since then, PMI has continued to invest in Coltabaco, its employees and its infrastructure, as well as in social and economic programs 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.