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Tue July 15, 2014
Reynolds American to acquire Lorillard in $27.4B deal
Breaking News from our media partners at the Triad Business Journal:
Reynolds American Inc. has struck a deal to acquire Lorillard Inc. for $27.4 billion.
Reynolds (NYSE: RAI) and Lorillard announced Tuesday morning that they have entered into a definitive agreement in which Winston-Salem-based Reynolds has agreed to acquire Greensboro-based Lorillard in a cash-and-stock transaction currently valued at $68.88 per Lorillard share, or a total of $27.4 billion, including the assumption of net debt.
The combined company will keep the Newport, Camel, Pall Mall and Natural American Spirit cigarette brands; Grizzly smokeless tobacco; and VUSE e-cigarettes.
In what is likely an early attempt to appease antitrust regulators, the KOOL, Salem, Winston, Maverick and blu eCigs brands and other assets and liabilities will be sold to Britain's Imperial Tobacco for $7.1 billion.
As part of the deal, Imperial Tobacco will acquire Lorillard's manufacturing and R&D facilities in Greensboro. Its 2,900 employees would also fall under Imperial, including its national sales force.
The closing of the sale of the Lorillard (NYSE: LO) assets to Imperial is conditioned upon, among other things, Reynolds' completion of the acquisition of Lorillard. Read more....