Premium cigars for sale

Imperial Brands intends to sell its worldwide premium cigar business, including two major cigar factories, JR Cigar, and 50 percent of Cuba’s Habanos and Altadis, which makes the non-Cuban Montecristo, Romeo y Julieta and H. Upmann brands.

According to Imperial, the move is part of £2 billion ($2.6 billion) divestment program to support its simplification agenda and will release capital to pay down debt and invest in its growth program. In addition to premium cigars, Imperial makes cigarettes, mass-market cigars, and has a logistics business.

In statement, Imperial said the Premium Cigars has performed well over a number of years with good revenue and profit growth.

“However, it is a unique luxury business with a different consumer base and route to market relative to Imperial’s other businesses,” the company wrote. “The sale of the business provides an attractive opportunity to realize shareholder value.

The divestment program was announced in May 2018 and is expected to generate proceeds of up to £2 billion ($2.6 billion) by May 2020. Imperial has so far realized £280 million from the sale of a portfolio of other tobacco products in the U.S. and a further 9.99 percent of Logista.