Philip Morris paid almost $ 3 billions for cigars

Corporation Altria, which owns a cigarette company Philip Morris, paid $ 2.9 billion for cigar manufacturer John Middleton, The Associated Press. Approximately $ 700 million of that amount are tax benefits. The transaction is expected to be completed by the end of this year.

John Middleton manufacturers of large cigars, made by machine. The volume of the market in 2007 amounted to $ 5.3 million. As expected by the end of this year growth John Middleton, will amount to $ 360 million and operating earnings of $ 182 million. Altria expects that the acquisition will compensate for the receding demand for cigarettes in the United States of America. Previously with the same purpose, the company started production of chewing tobacco under the brand Marlboro.

At the same time, the corporation Altria preparing to get rid of the international department of Philip Morris. It is assumed that the division of the company held on 30 January. It will allow Philip Morris to a more active work in developing country markets without any restrictions imposed by U.S. legislation.