STG Acquires Online Retailer Thompson Cigar

On Wednesday, STG (Scandinavian Tobacco Group) announced that they had formed an agreement to acquire online cigar retailer Thompson and Co. of Tampa, Inc. The sale reportedly amounts to 62 million US dollars, with the deal expected to close near the end of March, 2018.

Thompson was founded in 1915, making it the oldest mail order cigar company in the US. The company was first located in Key West, FL but now resides in Tampa, FL. According to a press release from STG, Thompson currently produces annual net sales of 100 million (US), using a staff of 185 employees. In the sale, STG will gain access to the company’s multiple online entities, customer base, retail space, and a call enter in Tampa.

Having spent 58 years making Thompson Cigar one of the most respected mail order cigar businesses in the country, it is now time to hand over the reins to a new owner that can continue to serve the long-term interest of the company. Becoming part of Scandinavian Tobacco Group will ensure an exciting future of opportunity for our employees, our customers and our suppliers.Bob Franzblau, CEO of Thompson Cigar

STG currently produces and sells 3 billion cigars annually under subsidiaries such as General Cigar Company and online retailer Cigars International. The company expects to bring Thompson’s margins to a level on par with Cigars International over time.

Our existing US online retailer Cigars International will in combination with Thompson be able to deliver an unmatched range of premium cigars at the highest level of service to the US consumers. At the same time we foresee significant cost synergies to the benefit of our customers and shareholders.CEO of Scandinavian Tobacco Group, Niels Frederiksen

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