Scandinavian Tobacco Group A/S has closed a deal to acquire the entire premium pipe tobacco brand portfolio of Peterson Pipe Tobacco from Kapp & Peterson Limited, an Irish pipe and pipe tobacco manufacturer. The terms of the transaction were not disclosed.
Peterson Pipe Tobacco has more than 150 years of storied heritage and is sold in 52 countries around the world. Within the Peterson brand portfolio are signature blends such as Sherlock Holmes, Old Dublin and Connoisseur’s Choice, each recognised for their complexity and premium positioning. Against the backdrop of globally-shrinking volumes for the category as a whole, the Peterson range has delivered consistent volume and revenue growth since 2014.
Executive Vice President of Sales & Marketing in Scandinavian Tobacco Group, Christian Hother Sørensen says: “M&A is part of the Scandinavian Tobacco Group DNA and we have a proven track record of achieving synergies when acquiring brands and businesses. We are excited about this small and interesting bolt-on acquisition in our pipe tobacco category. In Peterson Pipe Tobacco we are acquiring a sound portfolio of premium brands that will increase our offering to our consumers – and which we can further develop whilst leveraging our sales and marketing competencies.”
The acquisition strengthens Scandinavian Tobacco Group’s position in the important premium pipe tobacco segment, which has been growing in recent years. Additionally, the brand portfolio of Peterson Pipe Tobacco will further increase the Group’s presence in important pipe tobacco markets like Germany, the UK, the US and Asia.