Scandinavian Tobacco Group (STG) has agreed to the terms and conditions for the acquisition of Alec Bradley Cigar Distributors, Inc. and its associated companies. The acquisition includes all assets of Alec Bradley and is valued at $72.5 million. The deal is expected to close shortly.
Alec Bradley is a family-owned business that was launched in 1996 by Alan Rubin. When building his company, Rubin setup his company to be asset-light by outsourcing the cigar production and only having approximately 30 full-time employees in the U.S. and in Canada. In 2022 alone, Alec Bradley reportedly sold almost 10 million cigars. This was an increase of 5 percent when compared to 2021’s numbers. The company has several well-known and established brands in its portfolio including Prensado, Kintsugi, Alec Bradley Double Broadleaf, Fine and Rare and Black Market.
The acquisition is another step in STG’s plans to become the undisputed and sustainable global reader of cigars. With this deal, STG will be the owners and distributors of Alec Bradley’s portfolio of premium cigars. The company is based in Fort Lauderdale, Florida and reported annual net sales in 2021 as being $25 million and an EBITDA margin before special items of 24 percent. Both net sales and EBITDA margin reportedly improved during 2022.
In a press release, STG’s CEO Niels Frederiksen issued the following statement:
“The acquisition of the Alec Bradley cigar business is another important step toward our ambition of becoming the undisputed and sustainable global leader in cigars. Through this bolt-on acquisition, we will expand our portfolio of highly regarded premium cigars in the U.S. and international markets, delivering material value to our shareholders. We will also leverage the Alec Bradley brand portfolio to deliver increased excitement to the handmade cigar category through product innovation and brand activations, benefitting both the cigar enthusiasts and our trade partners.”
This is one of many big acquisitions STG has made in recent years. Several years ago, the company acquired Royal Agio (2020), a Belgium-based cigar maker that produced both machine-made and handmade cigars. Last year, the company acquired Room101 cigars (2022), a popular boutique brand with a massive following. The company also acquired online retailer Thompson Cigar (2018), Peter Pipe Group (2018), and Moderno Opificio del Sigaro Italiano (2021) as part of its acquisition strategy over the years.
STG has indicated that it expects the deal to close on Feb. 28, 2023. When the acquisition is complete, Alec Bradley will be integrated into STG. At this time, it is unclear what impact the integration will have on Alec Bradley’s 30 full-time employees.
For all the latest news from Scandinavian Tobacco Group, visit st-group.com.
