STG acquires Royal Agio. In a deal that nobody saw coming, Scandinavian Tobacco Group acquires Royal Agio. The Danish tobacco mogul pays 210 million Euro for the 115-year-old Dutch family business.
Royal Agio is best known in the premium cigar industry for their Balmoral cigars and the San Pedro de Macoris. But the company is big in machine-made cigars as well under the brand names Meharis, De Huifkar, and Panter. Last year, the turnover was 133 million euro with an operational profit of 18 million. The company has over 3000 employees worldwide.
Details about the deal have not been announced but the news is confirmed by Royal Agio and STG. The article will be updated as soon as more news is available.
Royal Agio cigars is a Dutch company, family-owned after more than a century. The Wintermans family, who founded Agio in 1904, are still running the show with Boris Wintermans as CEO nowadays But that will change with the Scandinavian Tobacco Group take-over. Where they made a name with their machine-made cigars, the last few years the focus is more on the premium lines. The Balmoral Añejo line has received high ratings from all over the world.
Royal Agio is also the distributor for Drew Estate and La Flor Dominicana in select European markets, such as Germany and The Netherlands. What will happen to the distribution of these brands is yet unclear. Antonio Gomez from La Flor Dominicana replied to an e-mail requesting information that time will tell and it’s business as usual for now.
Scandinavian Tobacco Group
Scandinavian Tobacco Group is the owner of General Cigars and the parent of big American retailers such as cigar.com, cigars international and Thompson.
“I am very pleased and proud that we have taken this important step towards an acquisition of Royal Agio,” said Niels Frederiksen, CEO of Scandinavian Tobacco Group. “If completed, the acquisition will be an important step in our ambition of becoming the global leader in cigars, as it significantly strengthens our position in several key machine-made cigar markets in Europe and enables us to deliver an attractive range of cigars of the highest standards to our consumers.”