Tobacco, according to informed sources in the United States to create a republican tobacco loose tobacco brands Drum licensing of private holding company is seeking buyers, the potential sale of the republic tobacco could be worth over two billion U.S. dollars.
Three Informed sources said that the republic tobacco cigarettes and cigarette paper manufacturers in the state of Illinois has attracted interest from private equity firms. The auction process is not yet open, these three people familiar declined to be named.
One of the informed sources, the republic tobacco worth up to $ 2.3 billion, informed sources said Credit Suisse Group is republican tobacco auction process to assess.Republic tobacco has other brands include Top brand tobacco and Job brand cigarette paper.
Republic tobacco and Credit Suisse Group were not immediately available for comment.
According to sources, when leveraged buyout funds ready, and the second round of the auction is about to begin. Private equity to support the purchase price decreased by 19% in the first half of 2012, fell to $ 113.7 billion, down about 25 percent to a lesser extent than the overall volume of transactions in the same period.
Republic tobacco products series including cigarette tobacco, cigarette paper, filter pipe, fittings, pipe tobacco and cigars.
The republic of tobacco belonging to the DRL enterprise, this enterprise is a holding company, was established in 1969 by Chicago entrepreneur Donald Levin, DRL (Donald Levin DRL), the company business involves aircraft manufacturing, medical equipment, machinery rental, film and television distribution and licensed sports products, etc..
Levin’s film company has production and distribution in the U.S. and overseas, nearly 20 action films, including Els, Emilio Carlos Tevez, Charlie Sheen, Sharon Stone, Rodney Dangerfield Field and Chuck Norris and other stars.
The tobacco companies are often seen as defensive investments because they are consumer stocks, and many mature markets of smoking is declining.
Because of this, like the Altria Group, Reynolds American and Lorillard and other tobacco companies often rely on prices to promote sales growth.
, According to Euromonitor International, Volume tobacco market value of $ 798.8 million, while the world market value of $ 18.48 billion.
Comments:
In the U.S. market, cigarette tax, cigarette sales decreased year by year, since the cigarette tax rate low, its sales has been an increasing trend. Of cigarette paper in the United States and cigarette manufacturers republic tobacco company for over 40 years of history, is now seeking buyers, it is estimated that the market could be worth over two billion U.S. dollars. Why the company you want to sell we do not know, but in the July 6, shortly before U.S. President Barack Obama signed a bill, commercial cigarette machine operators defined for the tobacco manufacturers, which also The cigarette market some impact. We will continue to focus on the auction progress of the republic tobacco company.
