M&A Deal Summary

Reynolds American Acquires Conwood Holdings

On May 31, 2006, Reynolds American acquired consumer products company Conwood Holdings for 3.5B USD

Acquisition Highlights
  • This is Reynolds American’s 3rd transaction in the Consumer Products sector.
  • This is Reynolds American’s 3rd largest (disclosed) transaction.
  • This is Reynolds American’s 3rd transaction in the United States.
  • This is Reynolds American’s 2nd transaction in North Carolina.

M&A Deal Summary

Date 2006-05-31
Target Conwood Holdings
Sector Consumer Products
Buyer(s) Reynolds American
Deal Type Add-on Acquisition
Deal Value 3.5B USD

Target

Conwood Holdings

Winston-Salem, North Carolina, United States
Conwood Holdings, Inc. is the nation’s second largest manufacturer of smokeless tobacco products.

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Buyer(S) 1

Buyer

Reynolds American

Winston-Salem, North Carolina, United States

Category Company
Founded 2004
Sector Consumer Products
Employees5,600
Revenue 12.4B USD (2016)
DESCRIPTION
Entrance to Reynolds American's corporate headquarters in Winston-Salem, North Carolina.
Entrance to Reynolds American's corporate headquarters in Winston-Salem, North Carolina.

Reynolds American Inc is a holding company focused on tobacco products. Its principal subsidiaries include the second largest tobacco company in the United States, R. J. Reynolds Tobacco Company; the second largest smokeless tobacco products manufacturer in the United States, American Snuff Company, LLC, referred to as American Snuff Co.; the manufacturer of the leading super-premium cigarette brand, Santa Fe Natural Tobacco Company, Inc., referred to as SFNTC; R. J. Reynolds Vapor Company, referred to as RJR Vapor, a manufacturer and marketer of digital vapor cigarettes in the United States.


DEAL STATS #
Overall 3 of 5
Sector (Consumer Products) 3 of 4
Type (Add-on Acquisition) 3 of 5
State (North Carolina) 2 of 3
Country (United States) 3 of 4
Year (2006) 2 of 2
Size (of disclosed) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-31 American Snuff

Memphis, Tennessee, United States

American Snuff Co., formerly known as Conwood Sales Co.y LLC.Conwood is the manufacturer of smokeless tobacco products.

Buy $3.5B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-12-02 Niconovum AB

Helsingborg, Sweden

Niconovum markets innovative nicotine replacement therapy (NRT) products under the Zonnic brand name in Sweden and Denmark. Its nicotine gum, mouth spray and pouches use proprietary technology for nicotine delivery.

Buy $44M