Imperial Tobacco Group, the tobacco company from the UK, plans to take control over Lorillard company and its 2,900 workers. They have chosen Greensboro to place head office of the new tobacco company. Total price of the deal is $27.4 billion.
The new company will have Imperial’s existing U.S. business and also it will buy Greensboro head offices, manufacturing plant and several cigarette brands such as Winston and Salem. The merger is expected to be finalized in 2015 and the name for the new company is not known yet.
Previously there were rumours that Imperial will move to Greensboro due to merge with other tobacco company, but the company’s representatives never confirmed it. Imperial spokesman Mark Smith told that until the merge there was not known in advance that head office will be in Greensboro. He expalins that this city was chosen because it is a perfect facility as it is near their plants in Reidsville.
The deal will make Imperial Tobacco the third largest tobacco company in the U.S. with a 10% share of the cigarette market. Imperial’s U.S. subdivision is called
Commonwealth-Altadis, Inc. After the merge with Lorillard, Imperial will own Winston, Salem and some other cigarette brands by Lorillard.
It is not known yet how many workers will be relocated from Fort Lauderdale to Greensboro.
Martin Orlowsky, who in past headed Lorillard, recently joined Imperial Tobacco Group to lead its enlarged business in the USA. He will have an office at the Greensboro facility.