Tag: Imperial Brands

Imperial Completes Sale of Cigar Business

photo: Image by Chris Frenzel from Pixabay
Imperial Brands completed the sale of its worldwide premium cigar businesses for a total consideration of €1.23 billion ($1.4 million) of which net cash proceeds of €1.1 billion will be used to reduce debt, the company announced on its website.
As announced on April 27, 2020, €88 million of consideration will be deferred for 12 months from today’s close, with a further €69 million deferred and contingent upon the transfer of the Dominican Republic factory, which is expected to complete in 2021. As subsequently announced on Sept. 28, Imperial has provided a further six-month deferral of €250 million while the buyers finalize long-term financing arrangements.
October 29, 2020
Mignot & De Block Buys EFKA Tube Factory

Photo: EFKA
Imperial Tobacco has sold its EFKA filter tube factory in Trossingen, Germany, to F + C Papiervertriebsgesellschaft for an undisclosed amount.
The buyer is part of Mignot & De Block, a Dutch group known in Germany mainly through its subsidiary, Gizeh Raucherbedarf.
Imperial Tobacco discontinued filter tube production in Trossingen in the first half of 2020 in the wake of declining production quantities and the loss of trademark agreements.
The EFKA brand, patents and other trademark rights remain property of Imperial Tobacco.
“EFKA has been an integral part of Trossingen for more than 108 years,” said Helmut Rutschke, managing director of EFKA. “To have to halt our production here is still very painful personally, particularly with regard to the employees affected. On the other hand, we are pleased to be able to hand the location over to a buyer that wants to continue production—and, with it, an important part of Trossingen’s economic tradition. We wish all parties involved every success.”
Christian Hinz
“We are delighted to lead a well-positioned production location with highly qualified employees into a new future, even beyond the production of filter tubes,” said Christian Hinz, CEO of the Mignot & De Block Group Germany. “Our investment in the site is long-term and growth-oriented.”
A total of 121 employees were affected by the halt of production at EFKA in Trossingen. Imperial Tobacco presented them with a variety of support offers and an extensive social plan.
October 13, 2020
Imperial Strengthens Executive Committee

Photo: Jakub Jirsák | Dreamstime
Imperial Brands has continued to show resilience in adapting to the challenges posed by the Covid-19 pandemic, according to CEO Stefan Bomhard.
“In my first three months as CEO I have focused on reviewing our strategy, engaging with employees, and visiting as many of our key markets as possible,” he said in a trading update. “I have been struck by the energy and passion of my colleagues, which increases my confidence in our ability to deliver a stronger performance in the years ahead.”
Bomhard also announced the addition of several external hires to its executive committee.
Murray McGowan has been appointed group strategy and transformation director. Murray has a background in strategy gleaned from his time at McKinsey, Whitbread, The Restaurant Group and Yum! brands.
Alison Clarke has been appointed chief people and culture officer. Alison was previously chief human resource officer at Inchcape, with responsibility for all aspects of people and culture strategies.
Javier Huerta has been appointed group manufacturing and supply chain director and will succeed Walter Prinz when he retires. Javier is currently executive vice president supply chain for foods and refreshment at Unilever and will join Imperial in the coming weeks.
The company is currently searching for a new chief financial officer, following Oliver Tant’s decision to retire.

October 8, 2020
Imperial Delays Sale of Cigar Business

Photo: Tobacco Reporter archive
Imperial Brands will complete the sale of its premium cigar business slightly later than originally envisioned. Given the challenges caused by Covid-19, both transactions will now be finalized on Oct. 29, 2020, the company said in a statement.

In April, Imperial Brands announced the sale of its worldwide premium cigar businesses for €1.2 million ($1.4 million), of which net cash proceeds of €1.1 billion will be used to reduce debt.

Gemstone Investment Holding and Allied Cigar Corp. have made a nonrefundable down payment of €91.7 million to Imperial. In addition, the purchasers have agreed to pay a further nonrefundable down payment of approximately €85 million to Imperial by Oct. 7.

Imperial has also agreed to provide a six-month vendor loan at completion of up to €250 million while the purchasers finalize long-term financing arrangements. All other terms remain in line with the April 27 announcement.
September 28, 2020
Kunze-Concewitz Joins Imperial Brands’ Board

Imperial Brands has appointed Bob Kunze-Concewitz to the board effective Nov. 1, 2020.
Kunze-Concewitz has a wealth of international business experience and is particularly skilled at marketing, having held a number of senior roles at leading fast-moving consumer goods companies. These include Global Prestige Products corporate marketing director at Procter & Gamble and group marketing director at Campari Group. He has been the chief executive officer of Campari Group for the past 13 years.
“I am delighted to welcome Bob to the board,” said Therese Esperdy, chair of Imperial Brands’ board in a statement. “He has a strong track record of successfully executing brand and marketing strategies, and his experience and expertise will be a great addition to the board’s skill set.”
Kunze-Concewitz will also join the remuneration committee effective Nov. 1, 2020.
September 21, 2020
Tant to Retire From Imperial Brands

Oliver Tant (Photo: Imperial Brands)
Imperial Brands Chief Financial Officer Oliver Tant will retire from the company once a successor is found, reports Reuters.
The move comes just a month after Stefan Bomhard, a former executive of car dealer Inchcape joined the cigarette maker as chief executive officer.
In May, Imperial Brands cut dividend for the first time since listing in 1996 as it looks to save cash amid the coronavirus pandemic and reduce its £14 billion ($18.31 billion) debt.
Imperial Brands is reportedly looking for an external replacement for Tant, who has been CFO since November 2013.
Imperial Brands reported revenue of £35.56 billion ($47.16 billion) in its fiscal year 2020, up from £31.59 billion in 2019. Its operating profit was £2.73 billion, compared with £2.2 billion the previous year. On an adjusted basis, the company’s revenue was £7.99 billion in 2020, down 0.1 percent from 2019. Adjusted operating profit was £3.53 billion, against £3.74 billion the previous year.
While benefiting from strong tobacco volumes, Imperial Brands said it suffered from a sub-optimal product and market mix in 2020. However, a more disciplined approach in next-generation products reduced second-half losses after a disappointing first six months, the company added.
August 7, 2020
RJR Remains Liable for Litigation Payments

A Florida state appeals court ruled that R.J. Reynolds (RJR) owes the state $100 million from a 1997 settlement.
RJR argues that it should not have to make payments for the Salem, Winston, Kool and Maverick brands as RJR sold those brands to ITG Brands in 2015.
“We find, simply put, that a contract is a contract and that Reynolds continues to be liable under the contract it signed with the state of Florida,” said the court’s decision, written by Chief Judge Spencer Levine.
“The FSA (Florida Settlement Agreement) required that Reynolds make annual payments to the state of Florida in perpetuity, with no condition of termination, in exchange for the release of liability for past and future medical costs incurred by the state of Florida,” Levine wrote.
July 30, 2020
Imperial Sells New Zealand Factory

Photo: Tobacco Reporter archive
Imperial Tobacco announced that it has sold its Petone (New Zealand) production facility to a real estate developer and will discontinue its operations at the facility by
Sept. 30. In Feb. it was reported that the factory’s closure would mean the loss of 122 jobs.
The Petone plant predominantly supplies Imperial Tobacco’s products to the Australasian market and is the company’s only factory in New Zealand or Australia.
Located in a popular suburb, the site measures 2.25-hectare and includes a warehouse along with manufacturing and office buildings
The site had been an important part of the Petone economy for around 90 years. W.D and H.O Wills Limited started manufacturing cigarettes in suburb around 1930, after establishing their business in Wellington in 1919 and needing to expand.
Imperial Tobacco had owned the site since the late-1990s
All production at the facility will be taken up by an Imperial facility in Taiwan.
July 27, 2020
Sivignon to Join Imperial Brands Board

Image: Skypixel | Dreamstime.com
Pierre-Jean Sivignon will join the board of Imperial Brands on July 1, 2020.

Sivignon is an experienced finance professional, having held chief financial officer positions at Faurecia, a leader in automotive technology, Philips, a health technology company, and most recently Groupe Carrefour, a global retailer, where he was also deputy CEO, advisor to the Carrefour chair and CEO.

Sivignon is currently a nonexecutive director of Vista Oil & Gas, which is listed on the Mexican Stock Exchange and the New York Stock Exchange. He has previously held nonexecutive directorships with Imerys and Technip.

“We are delighted to welcome Pierre-Jean to the Imperial Brands board,” said Imperial Brands Chair Therese Esperdy. “His international financial expertise in customer-facing businesses will be of great value to us, and he joins the board at an exciting time for the company.”

Sivignon will also join Imperial Brands’ audit committee effective July 1, 2020.
June 16, 2020
Stanton to Chair Imperial Brands’ Audit Committee

Jon Stanton | Photo: Imperial Brands
Karen Witts
Karen Witts has decided to step down as chair of the audit committee and as a non-executive director of Imperial Brands effective June 15, 2020.
Jon Stanton, who has been a member of the audit committee since May 2019 and has the required relevant financial experience, will succeed Witts as chair of the audit committee.
“I would like to thank Karen for her significant contribution to the board and its committees over the past six and a half years and wish her well in the future,” said Imperial Brands’ Chair Therese Esperdy.
June 12, 2020