JT completes Natural American Spirit acquisition

Reynolds American Inc. said yesterday that it had completed the sale of the international rights to the Natural American Spirit brand name and associated trademarks to the Japan Tobacco Group (JT Group).

The sale, which included also the international companies that distribute and market the brand outside the US, was an all-cash transaction valued at about $5.0 billion.

The purchase does not include the rights to the Natural American Spirit brand name and associated trademarks in the US market, US duty-free locations, US territories or in US military outlets, all of which will be retained by Santa Fe Natural Tobacco Company, a wholly owned subsidiary of RAI.

‘With this transaction completed, the international rights to nearly all of RAI’s operating companies’ cigarette trademarks are now owned by international tobacco companies, allowing the RAI companies to focus on brand growth in the US market,’ RAI said in a note posted on its website.

A similar announcement was made today by the JT Group, though it didn’t mention RAI or Santa Fe, referring only to a press note issued on September 29, the day on which the-then proposed acquisition was first announced.

‘Thanks to a strong international presence in the premium priced category, Natural American Spirit will allow the JT Group to further extend its brand portfolio outside the United States,’ said the JT press note posted today. ‘Its unique brand equity combined with a group of experienced and energetic people will further strengthen the Group’s business foundation.’