23rd Aug 2006 08:58
Imperial Tobacco Group PLC23 August 2006 IMPERIAL TOBACCO GROUP PLC ACQUIRES WORLDWIDE DAVIDOFF CIGARETTE TRADEMARK Imperial Tobacco Group PLC today announced that, subject to clearance from theGerman Federal Cartel Office, it has acquired the worldwide Davidoff cigarettetrademark from Tchibo Holding AG for a cash consideration of €540 million (£368million). Imperial Tobacco Group has been the long term licensee of theworldwide Davidoff cigarette trademark since the acquisition of Reemtsma in2002. Gareth Davis, Chief Executive of Imperial Tobacco Group, said: "Davidoff is ourkey international strategic premium cigarette brand and an important growthdriver for the business. We have achieved considerable success with Davidoffcigarettes, increasing global volumes in the last four years. "As well as significantly enhancing our brand equity this acquisition providesgreater flexibility to develop the brand, enabling us to increase investment andaccelerate its international growth. "Additionally, given the global growth potential of the brand and the likelihoodof significant increases in future royalty rates, acquiring the cigarettetrademark at this time will ensure that we maximise value for the long termbenefit of our shareholders." Mr Davis added: "This acquisition, combined with our ongoing share buybackprogramme, again demonstrates our ability to effectively manage our cash. Wecontinue to focus on the profitable development of the business and thisincludes pursuing other value creating acquisition opportunities as they arise. "I am also pleased that the provisions of the acquisition enable us to maintainour excellent relationship with the Oettinger Davidoff Group, owner of theworldwide Davidoff trademark for tobacco products other than cigarettes. Thiswill ensure that both parties continue to share their knowledge and expertise inmanaging the integrity of this valuable brand." ENDS Bob Dyrbus, Imperial Tobacco Group Finance Director, will host a conference callfor analysts and investors at 10am BST Dial-in number: +44 (0)20 7138 0836Quote conference title: Imperial Tobacco Group A replay of this call will be available from 1pm BST for seven days.Replay access number: +44 (0)20 7806 1970Replay pass code: 4288347# Mr Dyrbus will host a separate conference call for media at 11am BST. Dial-in number: +44 (0)20 7138 0817Quote conference title: Imperial Tobacco Group A replay of this call will be available from 2pm BST for seven days.Replay access number: +44 (0)20 7806 1970Replay pass code: 4393466# NOTES TO EDITORS Imperial Tobacco Group Imperial Tobacco Group is the world's fourth largest international tobaccocompany. The Group manufactures and sells a comprehensive range of cigarettes,tobaccos, rolling papers, filter tubes and cigars in over 130 countriesworldwide. It has around 14,500 employees and 31 manufacturing sites. Davidoff cigarette brand Davidoff is Imperial Tobacco Group's key international strategic premiumcigarette brand and is sold in more than 70 countries worldwide. The Davidoffcigarette brand is a key growth driver for the Group and continues to performwell on a global scale. In our financial year to September 2006, we anticipatethat global Davidoff volumes will be around 14 billion cigarettes (2005: 13billion cigarettes). In the half year to March 2006, Davidoff volumes werearound 6 billion cigarettes, up 7% on 2005. ENQUIRIES Alex Parsons, Group Media Relations Manager +44 (0)7967 467 241 Simon Evans, Group Media Relations Executive +44 (0)7967 467 684 Nicola Tate, Investor Relations Manager +44 (0)117 933 7082 John Nelson-Smith, Investor Relations Manager +44 (0)117 933 7032 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Imperial Brands