STG’s acquisition of Mac Baren will contribute to STG’s already well-established position in the global market for pipe tobacco. Photo credit: ST Group
Scandinavian Tobacco Group (STG) agreed on the terms and conditions for the acquisition of all the shares of Mac Baren Tobacco Company from Halberg. On a debt and cash free basis (the enterprise value), the transaction is valued at DKK535 million (US$76.87 million). The acquisition will be financed by cash at hand and debt. Closing of the transaction is expected shortly.
Mac Baren is a family-owned business founded in 1826 and is a leading global smoking tobacco company, which includes a strong portfolio of pipe tobacco brands such as Mac Baren, Amphora, and Holger Danske as well as fine-cut tobacco brands like Amsterdamer, Choice, and Opal. The company also produces and sells nicotine pouches with the brands ACE and GRITT.
Mac Baren’s products are sold in 74 countries with the majority of net sales generated in the US, Denmark, and Germany. Other key markets include the UK, France, Spain and Italy. The company is based in Svendborg, Denmark with production facilities in Denmark and in Richmond, VA in the US. The company has approximately 200 full-time employees.
Mac Baren’s reported annual net sales (April/2024) were DKK723 million with a reported EBITDA of DKK85 million. Nicotine pouches accounted for close to 20% of net sales with a small negative contribution to EBITDA.
STG’s full-year financial guidance for 2024, excluding the impact from the Mac Baren acquisition, remains unchanged. The financial impact of the acquisition will be communicated as soon as the integration planning period has been completed, which may take up to 120 days.