Tobacco company Imperial Brands is selling its premium cigar business for €1.23 billion ($1.33 billion) to a group of private investors as it looks to cut debt, the company said.
The Winston and Gauloises Blondes cigarette maker said the sale will take place in two parts, with Gemstone Investment Holding buying the USA unit for €185 million, while Allied Cigar Corp will buy the rest for €1.04 billion.
"This disposal reinforces our strategic ambition of becoming a leaner and more agile organisation," said joint interim chief executives, Dominic Brisby and Joerg Biebernick.
AZ Capital is advising Imperial Brands, whose stock was up 3.7% at 1,604 pence as of 09:41 GMT following the announcement.
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