It was announced that Scandinavian Tobacco Group (STG) would acquire Alec Bradley Cigar Co. for DKK 500 million, approximately $72.5 million.
In addition to cigars, Alec Bradley also offers cigar accessories. The company is based in Fort Lauderdale, Fla. In addition to not owning any factories, the company uses factories in Honduras, Nicaragua, and the Dominican Republic to produce its cigars.
The company was founded in 1996 after Alan Rubin sold his family’s hardware business. Following the cigar boom of the 1990s, Ralph Montero joined the company in 2000, giving the company a background in the cigar industry. The company was named after Rubin’s sons, Alec and Bradley Rubin, who have since joined as employees.
In addition to General Cigar Co., Cigars International, Thompson and others, STG owns a minority stake in Plasencia cigars, one of the main producers of Alec Bradley cigars. STG is also one of the few companies that has acquired consistently since going public in 2016.
The company generated $25 million in revenue in 2021, with an EBITDA of 24 percent before special items. According to STG, Alec Bradley’s revenue and EBITDA improved in 2022, but it did not provide specifics; however, it said Alec Bradley sold about 10 million cigars in 2022.
Niels Frederiksen, STG’s CEO, declared in a press release that the acquisition of the Alec Bradley cigar business is a crucial step towards accomplishing their goal of becoming the unquestioned and lasting global leader in cigars. The purchase will expand their selection of prestigious premium cigars in both U.S. and international markets, providing notable value to their shareholders. Moreover, they plan to employ the Alec Bradley brand portfolio to add enthusiasm to the handmade cigar sector via product development and brand activations — thereby delighting cigar lovers and our trading companions alike.
The deal will be financed by debt and cash on hand, says STG, which is publicly traded on NASDAQ Copenhagen.
STG announced this morning that the deal will close on Feb. 28. Alec Bradley, with 30 full-time employees in the U.S. and Canada, will be integrated into the firm. The company’s large portfolio of brands is split between two national sales teams: General Cigar Co. and Forged Cigar Co. It is unclear which STG sales team will be selling Alec Bradley products.