Scandinavian Tobacco Group is acquiring substantially all assets of XQS International in Sweden The transaction value consists of an upfront payment as well as an earnout agreement, STG announced in a press note.
Assuming all targets are met, the total purchase price will be about DKK150 million ($22.19 million), and it will be fully financed by cash at hand and debt.
XQS is active in smoke-free products, and its products are primarily sold in Sweden. In 2022, XQS’ reported net sales were about DKK50 million with a low single-digit EBITDA margin and a total volume of 3 million cans.