Reynolds American Completes Lorillard Acquisition, Related Divestitures

(RTTNews) - Tobacco company Reynolds American, Inc. (RAI) announced the completion of Lorillard, Inc. (LO) acquisition and related divestiture transactions.

As a result of the acquisition, Lorillard is a wholly owned subsidiary of RAI, and former Lorillard shareholders will own approximately 15 percent of RAI's common stock, the company stated.

In the acquisition, former Lorillard shareholders will receive $50.50 in cash and 0.2909 of a share of RAI common stock for each share of Lorillard common stock they owned. In the related divestiture transactions, subsidiaries of RAI have sold the KOOL, Salem, Winston, Maverick and blu eCigs brands, and other assets and liabilities, to ITG Brands, LLC, a subsidiary of Imperial Tobacco Group, PLC, for total consideration of approximately $7.1 billion in cash.

Additionally, British American Tobacco p.l.c. maintained its approximately 42 percent ownership in RAI through an equity investment of about $4.7 billion.