Swedish Match Acquires Bogaert Cigars

• Portfolio consists of machine made cigars and cigarillos
• Primary markets are France, Germany, Netherlands, Belgium
• Bogart and Hollandia brands, as well as private label products
• Production in Belgium and Indonesia
• Annual turnover of approximately 20 MEUR

Swedish Match has agreed to purchase Bogaert Cigars, a privately held cigar company that has been producing cigars since 1937. The company is headquartered in Belgium with production facilities in Jabbeke, Belgium and Pasuruan, Indonesia. Bogaert has an annual turnover of approximately 20 MEUR, and approximately 600 employees. Yearly production volumes are currently some 270 million cigars.

The Bogaert cigar portfolio consists of machine-made cigars/cigarillos of own-brands (Bogart and Hollandia) as well as private label. The primary markets are France, Germany, Netherlands and Belgium, which together comprise more than 90 percent of company turnover.

In this transaction, Swedish Match would acquire 100 percent of the shares in Bogaert Cigars NV (production and sales/marketing in Belgium) and PT Java Cigar Manufacturing (production in Indonesia).

“We are very excited about this transaction,” said Sven Hindrikes, President and CEO of Swedish Match. “The Bogaert Cigar business fits very well with our existing organization, allows the Company to expand its portfolio of products, and helps Swedish Match to increase its presence in fast growing segments in several important European markets.”

Details of the purchase price have not been disclosed.
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