Swedish Match Acquires V2 Tobacco

STOCKHOLM, Sept. 1, 2017

•  Solid growth in the modern chewing tobacco segment, with chew bags
•  Active and growing in many markets, notably in Denmark, Germany as well as on-line, with a small but dynamic presence in Scandinavian markets outside of Denmark
•  Main brands include Thunder, Offroad, and Phantom (chew bags and snus)
•  Production in Silkeborg, Denmark
•  Annual turnover in the range of 160 MSEK, and approximately 60 employees (FTE)

V2 Tobacco is a Danish company, founded in 2006 with modern and flexible production facilities in Silkeborg, Denmark. The yearly production volumes include close to 20 million cans of chew bags and snus combined.

V2 Tobacco's portfolio consists of brands including Thunder, Offroad, and Phantom. The company is active in more than 25 markets, with the main markets being Denmark, Sweden and Norway, Germany, Switzerland, on-line, and a small but growing presence in certain other European markets.

In this transaction, Swedish Match will acquire 100 percent of the shares in V2 Tobacco (production and sales/marketing in Denmark). The current CEO and one of the founders of the company, Marc Vogel, has agreed to remain with the Company, which will be operated for the most part independently from other Swedish Match businesses. The closing date of the transaction is August 31st.

"We are very excited about this transaction," said Lars Dahlgren, President and CEO of Swedish Match. "A vibrant and independent V2 Tobacco business fits very well as a complement to our existing organization. V2 Tobacco´s modern and adaptable production allows Swedish Match improved flexibility and expanded opportunities to adapt to changing consumer desires, helping Swedish Match to move further toward its vision of a world without cigarettes."

"It has been of importance to us to find a buyer who shares our values and ambitions for the future. With their long history, competence and their extensive work with product quality, Swedish Match will give our operation in Silkeborg new and better opportunities to develop and grow, says Marc Vogel."

Details of the purchase price have not been disclosed.