Philip Morris and Altria: High Noon in Marlboro Country

Ever since the separation of Philip Morris International (PMI) from its former parent company Altria in 2008, the scenic Marlboro Country promoted in the famous ad campaigns has in fact been two countries. On the one hand there is the United States, birthplace of the modern reincarnation of the Marlboro brand, and on the other … Continue reading Philip Morris and Altria: High Noon in Marlboro Country

Swedish Match Stubs Out The Cigars

Swedish Match recently announced its intention to separate the US cigar division from its smoke-free and lights segments. The company is planning to spin off its US cigar business through a distribution of shares in a new, publicly listed US entity to existing shareholders. Swedish Match will realize value from the transaction by transferring existing … Continue reading Swedish Match Stubs Out The Cigars

Philip Morris Adds A Piece To The Smokefree Puzzle

Last week Philip Morris International announced it has agreed to buy Fertin Pharma from current owners EQT (70%) and the Bagger-Sørensen family (30%). The transaction value is roughly $820 million, for a price/sales multiple of somewhat over 5x, and an EV/EBITDA valuation of approximately 15x (using fy2020 financial data). Fertin Pharma started as a candy … Continue reading Philip Morris Adds A Piece To The Smokefree Puzzle

Altria and BAT: Will The FDA Go Menthol?

Yesterday the Wall Street Journal reported that the Biden administration is considering regulations targeting nicotine levels in cigarettes as well as menthol flavorings. With regards to nicotine, an addictive chemical present in tobacco smoke, the measure being considered is to only allow non-addictive levels of the substance in cigarettes. The potential measure with regards to … Continue reading Altria and BAT: Will The FDA Go Menthol?

Imperial Brands: A Weak Pulze

It has been quite an eventful year for tobacco purveyor Imperial Brands. Not only did Imperial cut its dividend for the first time ever as a public company, but it also saw a nearly complete overhaul of its senior leadership. Long-time CEO Alison Cooper has made way for Stefan Bomhard, formerly of Inchcape, and new … Continue reading Imperial Brands: A Weak Pulze