GREENSBORO, N.C. -- The Board of Directors of Lorillard Inc. elected Murray S. Kessler to serve as president and chief executive officer of the company effective Sept. 13, 2010, succeeding Martin L. Orlowsky, current chairman, president and CEO. Kessler also was elected to serve as a member of the Board of Directors of the company effective Sept. 13.
In addition, Orlowsky announced his intention to retire as chairman of the board and a director effective Dec. 31, 2010. The Board of Directors has entered into a consulting agreement with Orlowsky to provide ongoing advice [image-nocss] to the company for a period of two years following his retirement.
"It has been a privilege to serve as Lorillard's president and chief executive officer for the past 11 years. I have enjoyed working with the Board of Directors, leadership team and dedicated employees to build a successful business and oversee its transition as a public company," Orlowsky said. "With his qualifications and proven track record at UST Inc., Murray is well-positioned to continue to build on Lorillard's success. I look forward to assisting with his transition over the next few months."
Kessler, 51, joins Lorillard most recently from Altria Group Inc., where he served as vice chair of Altria and president and CEO of UST LLC, a wholly owned subsidiary. Kessler held this position from January 2009 through June 2009, the six months following the acquisition of UST Inc. ("UST") by Altria.
Speaking on behalf of Lorillard's Board of Directors, lead independent director Richard Roedel said, "On behalf of the board, I want to take this opportunity to thank Marty for his leadership, vision and commitment to Lorillard. For the past year, the Board of Directors has searched for a chief executive officer with the industry and leadership experience to succeed Marty. Murray's outstanding background and significant experience in the tobacco industry make us confident that he is the right choice to successfully lead Lorillard going forward."
Commenting on his new appointment, Kessler said, "Thanks to Marty and his strong leadership team, Lorillard has outperformed the tobacco industry in almost every key measure. I am honored to join the leadership team of this great company, its dedicated employees and passionate Board of Directors. I am confident that together we will build upon the company's strategy of responsibly winning in the marketplace and, as a result, grow shareholder value. I look forward to working with Marty to ensure a smooth transition."
Prior to 2009, Kessler had served as chairman of the board of UST, the principal businesses of which included U.S. Smokeless Tobacco Co. and Ste. Michelle Wine Estates, since January 2008, and as president and CEO of UST since January 2007. He was president and COO from November 2005 to December 2006 and was president of USSTC from April 2000 through October 2005.
During his tenure at UST, the company experienced tremendous growth including an increase in enterprise value from $3 billion to $12 billion. Prior to joining UST, Kessler had over 18 years of consumer-packaged-goods experience with companies including Campbell Soup and Clorox.
Kessler earned a Bachelor of Science in business administration from Villanova University and an M.B.A. in marketing and finance from New York University's Stern School.
Greensboro, N.C.-based Lorillard Inc. is the third-largest manufacturer of cigarettes in the United States. Founded in 1760, Lorillard is the oldest continuously operating tobacco company in the U.S. Newport, Lorillard's flagship menthol-flavored premium cigarette brand, is the top-selling menthol and second-largest-selling cigarette in the U.S. In addition to Newport, the Lorillard product line has five additional brand families marketed under the Kent, True, Maverick, Old Gold and Max brand names.
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