Lorillard CFO to Lead Imperial Tobacco's ITG Brands
Executive instrumental in executing Reynolds American merger, brand divestitures
BRISTOL, England & GREENSBORO, N.C. -- David Taylor, currently executive vice president of finance and planning and CFO of Lorillard Inc., will become CEO of ITG Brands LLC. ITG will be a newly formed subsidiary of Imperial Tobacco Group PLC following the closing of Lorillard's pending merger with Reynolds American Inc. and Reynolds' divesture of certain brands to Imperial Tobacco.
The appointment will be effective immediately upon the closing of the transactions, which the companies expect at substantially the same time in the first half of 2015.
Taylor has held his position at Lorillard since 2008. He has a wealth of experience and has been actively involved in preparing for the launch of ITG Brands.
The company also announces that executive chairman Martin Orlowsky has voluntarily resigned due to differences with the company's management style.
"David has been instrumental in building Lorillard's outstanding track record of growth, which culminated in the exciting transactions we announced last summer," said Murray Kessler, Lorillard's chairman, president and CEO. "David's appointment is a testament to all he has achieved at Lorillard. He has been working closely with the team at Imperial in preparing for the launch of ITG brands, and I know he will succeed as the head of that business. As we work to complete the transactions, I look forward to continuing to work together with David as we execute on Lorillard's strategy and deliver performance."
"Our commercial and operational plans are well-advanced, and we continue to make excellent progress with integration planning," Alison Cooper, CEO of Imperial Tobacco Group, said: "Regulatory approval for the deal is expected in the spring, and under David's leadership, we look forward to establishing ITG Brands as a major competitive player in the U.S. tobacco market."
In July 2014, Lorillard's board approved a merger agreement with Reynolds American. The transaction remains subject to regulatory approval and the additional customary closing conditions. Separately, Reynolds American has entered into an agreement with Imperial Tobacco under which Imperial has agreed to purchase the KOOL, Salem, Winston, Maverick and blu eCigs brands, as well as other assets and liabilities, for $7.1 billion. Although no assurance can be given if and when the transactions will be completed because they remain subject to regulatory approval and other customary closing conditions, the transactions are expected to close, at substantially the same time, in the first half of 2015.
Lorillard, through its Lorillard Tobacco Co. subsidiary, is the third largest manufacturer of cigarettes in the United States. In addition to its flagship product Newport, the Lorillard Tobacco product line has four additional cigarette brand families marketed under the Kent, True, Maverick and Old Gold brand names. These five brands include 43 different product offerings which vary in price, taste, flavor, length and packaging. Through its other subsidiaries, Lorillard is also a leading global electronic cigarette company, marketed under the blu eCigs brand. Lorillard maintains its corporate headquarters and manufactures all of its traditional cigarette products in Greensboro, N.C.
Bristol, England-based Imperial Tobacco Group PLC is a multi-national tobacco company offering cigarettes, fine-cut tobacco, cigars, rolling papers and tubes.