Scandinavian Tobacco Group (STG) is acquiring Mac Baren Tobacco Company, a family-owned business founded in 1826. Mac Baren has a portfolio of pipe tobacco brands, including Mac Baron, Amphora, and Holger Danske. It also manufactures fine-cut tobacco brands, including Amsterdamer, Choice, and Opal. Mac Baren also produces and sells nicotine pouches under the brands ACE and GRITT.
STG announced on June 27, 2024, that it had agreed to the terms and conditions of the acquisition of Mac Baren Tobacco Company and that it would acquire all the company’s shares from Hallberg A/S. The transaction is valued at DKK 535 million.
Mac Baren’s reported annual net sales in April 2024 were valued at DKK 723 million. The Nicotine pouches accounted for close to 20% of net sales with a small negative contribution to EBITDA. Mac Baron is headquartered in Svendborg, Denmark and has production facilities in Denmark and in Richmond, Virginia. Currently, Mac Baren has around 200 full-time employees.
In a press release, STG’s CEO Niels Frederiksen commented: “I am very pleased that we have taken this important step to strengthen our smoking tobacco business with the acquisition of Mac Baren. The acquisition will contribute to our already well-established position in the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers. The combination with our existing business is expected to deliver meaningful synergies when fully integrated and good value for our shareholders.”
Torben Sørensen, chairman of the board at Halberg A/S, added: “Scandinavian Tobacco Group is acquiring a strong company with a lot of know-how, loved brands and skilled employees. Since its inception in 1826, a central part of Mac Baren’s DNA has been its focus on new opportunities and ensuring optimal competitiveness. In light of this, it is timely prudence to now let the company become part of a stronger constellation. It is a particular pleasure that ownership has been retained in Danish hands. This is the best possible solution for both Mac Baren and Halberg.”
The financial impact of the acquisition on STG has not yet been communicated.