WINSTON-SALEM, N.C. -- Reynolds American Inc. (RAI) said that it has completed the sale of the international rights to the Natural American Spirit brand name and associated trademarks to the Japan Tobacco Group (JT Group) in an all-cash transaction valued at approximately $5 billion.
The sale also includes the international companies that distribute and market the brand outside the United States.
The purchase does not include the rights to the Natural American Spirit brand name and associated trademarks in the U.S. market, U.S. duty-free locations, U.S. territories or in U.S. military outlets, all of which will be retained by Santa Fe Natural Tobacco Co. Inc. Santa Fe is a wholly owned subsidiary of RAI.
With this transaction completed, the international rights to nearly all of RAI’s operating companies’ cigarette trademarks are now owned by international tobacco companies, allowing the RAI companies to focus on brand growth in the U.S. market.
Selling the international trademark rights to a company with an established global infrastructure was more advantageous to RAI than investing in an international infrastructure capable of supporting Natural American Spirit’s growth potential, Susan M. Cameron, RAI president and CEO, said when the companies announced the deal in Sept. 2015.
"Natural American Spirit, which has a strong and international presence in a premium priced category, will allow the JT Group to further extend its brand portfolio. This strong and unique brand equity combined with an energetic and experienced team of people will further strengthen our Group's business foundation," Mitsuomi Koizumi, president and CEO of the JT Group, said at the time.
Winston-Salem, N.C.-based Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Co.; Santa Fe Natural Tobacco Co. Inc.; American Snuff Co. LLC; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.
R.J. Reynolds Tobacco's brands include Newport, Camel and Pall Mall cigarettes; American Snuff's brands include Grizzly and Kodiak smokeless tobacco products; Santa Fe Natural Tobacco manufactures and markets Natural American Spirit 100% additive-free natural tobacco products, including styles made with organic tobacco; Niconovum USA and Niconovum AB market nicotine replacement therapy products in the United States and Sweden, respectively, under the Zonnic brand name; and R.J. Reynolds Vapor manufactures and markets Vuse electronic cigarettes.
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