Scandinavian Tobacco Group to acquire XQS International AB

On April 23, Scandinavian Tobacco Group A/S reached an agreement on the terms and conditions of the acquisition of almost all of the assets of XQS International AB, a Swedish company. The transaction is expected to be completed soon.

The transaction value includes a prepayment and a profit target agreement. Assuming all targets are met, the total acquisition price will be approximately DKK 150 million, which will be fully financed through cash and debt.

XQS is involved in the nicotine pouch business, with their products mainly sold in Sweden. In 2022, XQS reported a net sales revenue of approximately 50 million Danish kroner (equivalent to 50.88 million yuan) with an EBITDA profit margin in the single digits. Their total sales volume amounted to 3 million cans.

Scandinavian Tobacco Group specializes in the manufacture of cigars and pipe tobacco, with its headquarters located in Copenhagen, Denmark. The company produces 4 billion cigars and 5,000 tons of fine-cut tobacco annually. It also has over 200 investments globally and locally, including notable brands such as Cohiba, CAO, and Macanudo.

Further Reading:

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Scandinavian Tobacco Group A/S has acquired the brand XQS.