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Orlik Tobacco Company is strengthening its international position on the pipe tobacco market through the acquisition of several well-known pipe tobacco brands from British American Tobacco. The brands are sold in 24 countries.

The acquisition price was EUR 24 million and includes brands such as Erinmore, Clan, Sail, Danske Club and Kentucky Bird.

The brands are primarily sold on markets where Orlik can strengthen its future position. The acquisition gives a significant boost to OTC’s internationalisation in countries like UK, Belgium, Netherlands, France, Spain, Canada, Malaysia and South Africa.

Two years ago Orlik entered a contract manufacturing agreement with BAT for some of the pipe tobacco brands, so part of the production has already moved to Denmark. The remaining production will be transferred from BAT/Niemeyer in the Netherlands during the spring of 2007, which will create four new jobs, primarily at Orlik's Holstebro factory.

The acquisition increases Orlik's pipe tobacco exports by 270 tons, and consolidates its position as the world's largest manufacturer of pipe tobacco.

Further information can be obtained from managing director Georg Gundersen, Orlik Tobacco Company, tel +45 64 71 10 32.


- a world leading manufacturer of cigars and traditional pipe tobacco

- approx. 8,200 employees in the Dominican Republic, Honduras, Nicaragua, Indonesia, Europe, New Zealand, Australia, Canada and the US

The Group’s brand portfolio contains more than 200 international, regional and local tobacco brands, including the cigar brands Café Crème, La Paz, Henri Wintermans, Macanudo, CAO, Partagas (US) and Cohiba (US). Pipe tobacco brands include Captain Black, Erinmore, Borkum Riff and W.Ø. Larsen, while leading fine-cut tobacco brands include Bugler, Break, Escort, Bali Shag and Tiedemanns.

The Group is ultimately owned by two Danish foundations (51%) – the Augustinus Foundation and Det Obelske Familiefond – and by Swedish Match (49%). Both Danish foundations have been active in the tobacco industry for more than 250 years. Swedish Match is a publicly owned company listed on the Stockholm Stock Exchange.

Read more: www.st-group.com.

Scandinavian Tobacco Group A/S
Sydmarken 42
DK-2860 Søborg

CVR 31 08 01 85

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