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Japan Tobacco Inc

Japan Tobacco Inc is the producer of Monte Carlo cigarettes(JT) (TSE: 2914) today announced that it has entered into an agreement to acquire all of the outstanding shares of Al Nakhla Tobacco Company SAE and Al Nakhla Tobacco Company – Free Zone SAE (Hereinafter “Nakhla”). The agreement was between signed1 JT Group and French SA, which manages Nakhla. JT expects complete2 acquisition in the fiscal year ending March 31, 2013.

Nakhla, with headquarters and two factories in Cairo and Shebin El Kom, Egypt, is one of the world’s leading water pipe tobacco (also known as molasses and barbecue) manufacturers with an important presence in the domestic market. It exports its products to over 85 countries, primarily in the Middle East and North Africa, where such products are deep-rooted heritage. With a heritage of almost 100 years of experience in the industry, Nakhla pioneered the concept of aromatic syrup and has a 70% market share in this segment in Egypt. Total sales Nakhla was about 24,000 tons in 2011 (roughly comparable to 24 billion cigarettes, by volume), a diversified portfolio of brands containing El Nakhla, Classic, Mizo and other popular brands.

“Our acquisition of Nakhla offers excellent opportunities for growth in the water segment and expands our portfolio of brands, in line with our strategy to meet the needs of adult consumers in a number of categories of tobacco products,” commented Fadul Pekhazis, regional president of the Middle East, Middle East, Africa, Turkey and World Wide Duty Free in Japan Tobacco International (JTI). “In addition, the acquisition expands the geographic environment JTI in the Middle East and Africa, and in the long term, provides a platform for JTI participate in significant cigarette market in Egypt.”

It is assumed that this acquisition will be funded from existing resources JT group, and if necessary loans. The transaction is valued at a high single digit earnings multiple base Nakhla before interest, taxes, depreciation and amortization in 2011. The acquisition is expected, little effect on the Group’s consolidated results, cash flow and balance sheet.

Japan Tobacco Inc. is the leading international tobacco. Its products are sold in more than.

120 countries and its internationally recognized cigarette brands include Winston, Camel, Mild Seven and Benson & Hedges. With a variety of activities, JT is also actively present in pharmaceuticals and foods.



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