Reynolds To Sell Natural American Spirit Intl. Businesses To JT Group For $5 Bln

(RTTNews) - Reynolds American Inc. (RAI) Tuesday announced the sale of international business of Natural American Spirit to the Japan Tobacco Group of companies or JT Group in an all cash transaction worth around $5 billion.

The deal includes international rights to the Natural American Spirit brand name, associated trademarks, along with the international companies that distribute and market the brand outside the U.S. However, the rights to the Natural American Spirit brand name and associated trademarks in the U.S. market, U.S. duty-free locations, U.S. territories or in U.S. military outlets will be retained by Santa Fe Natural Tobacco Company, Inc., a wholly owned subsidiary of Reynolds.

Upon the completion of the deal Reynolds will focus on brand growth in the U.S. market. The companies expect to get approvals by early 2016 and to to close the deal after that.

Susan Cameron, RAI's president and CEO said, "When backed by the strength of the JT Group's international distribution, sales force and manufacturing capabilities, we believe that growth trajectory will not only continue, but accelerate."