Wednesday, March 17 2010
MarketWatch.com
RICHMOND, Va., March 18, 2010 /PRNewswire via COMTEX/ -- Swedish Match AB announced today it has signed an agreement with the Plasencia Group (PG) to form a new tobacco growing/procurement operation for its Swedish Match International (SMI) cigar business. Swedish Match will acquire a 20% interest in the newly formed Caribbean Cigar Holdings. This follows the strategic goal of Swedish Match in developing its global cigar business to be best in class. The Plasencia Group will remain in charge of operations.
PG is a family owned tobacco growing and premium cigar production operation located in Honduras and Nicaragua. The company is highly regarded within the cigar industry for its leaf growing, processing, and cigar making expertise.
Swedish Match International manufactures and markets both premium and mass-market cigars primarily for the US market and machine-made cigars for the European and the International market, as well as pipe tobacco, matches and lighters in Continental Europe, Latin America, Australia and Asia.
The JV agreement provides Swedish Match International with additional tobacco expertise and increases the manufacturing flexibility of the SMI cigar business with Honduran and Nicaraguan-origin products.
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SOURCE Swedish Match
