CSP Daily News reported on the impending deal in early November.
"Niconovum's products have great [image-nocss] potential in meeting consumer demand and public health objectives," said Susan M. Ivey, chairman, president and chief executive officer of Reynolds American. "This acquisition extends the harm-reduction strategies RAI and its operating companies have been developing over the past several years.
She added, "Longer term, we believe the acquisition of Niconovum will enable an RAI operating company to provide adult tobacco consumers with innovative cessation products that have the potential to reduce the risks of diseases and death caused by tobacco use.
Ivey said that RAI intends to provide Niconovum with the investment capital it needs to focus on product development and the testing required to enter additional markets.
"We believe the technology used in our Zonnic products better meets consumer preferences than other NRTs currently on the market," said Nils Siegbahn, president and chief executive officer of Niconovum. "With today's announcement, Niconovum will have access to the capital it needs to expand distribution of Zonnic to additional markets, and accelerate product refinements and new product development."
Niconovum will be a separate operating company of Reynolds American, and the transaction is expected to be completed by year-end. Founded in 2001, Niconovum is based in Helsingborg, Sweden. Reynolds American's intention is to retain Niconovum's current management team, and its headquarters will remain in Helsingborg.
Winston-Salem, N.C.-based Reynolds American is the parent company of R.J. Reynolds Tobacco Co., Conwood Co. LLC and Santa Fe Natural Tobacco Co. Inc. R.J. Reynolds Tobacco is the second-largest U.S. tobacco company. The company's brands include five of the 10 best-selling cigarettes in the United States: Camel, Pall Mall, Winston, Kool and Doral. Conwood is the nation's second-largest manufacturer of smokeless tobacco products. Its leading brands are Kodiak, Grizzly and Levi Garrett. Conwood also sells and distributes a variety of tobacco products manufactured by Lane Ltd. including Winchester and Captain Black little cigars, and Bugler roll-your-own tobacco. Santa Fe Natural Tobacco manufactures Natural American Spirit cigarettes and other additive-free tobacco products, and manages and markets other super-premium brands.
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