Imperial Brands PLC’s €1.225 Million Sale of Worldwide Premium Cigar Business

Dentons, Pellerano Nadal, Andersen Global and Headrick Rizik Alvarez & Fernández.

Imperial Brands PLC (“Imperial”) is pleased to announce it has agreed the sale of its worldwide premium cigar businesses (“Premium Cigars”) to investment consortia of individual investors in two distinct transactions for a total consideration of €1,225 million (£1,074 million), which represents a multiple of 11.8x FY19 EBITDA on a standalone basis. The disposal reinforces Imperial’s focus on simplifying its business and realising value for shareholders.

The sale multiple recognises the luxury nature of the businesses’ products and their international growth profile. After adjusting for tax and other costs, the disposals are expected to realise net cash proceeds of around €1,094 million (£958 million). The proceeds will be used for debt reduction and will reduce September 2019 pro-forma net debt to EBITDA leverage by c 0.2 times.

Dentons advised Gemstone Investment Holding Ltd. and Allied Cigar Corporation, S.L. with Nicholas Plant and Jesús Durán.

In Santo Domingo, Pellerano Nadal advised Gemstone Investment Holding Ltd. and Allied Cigar Corporation, S.L. with Luis Rafael Pellerano, Gustavo Mena, Urania Paulino, Belkys Génesis Rodríguez and Daniella Pellerano.

Andersen Global advised Imperial Brands PLC with Jaime Olleros and Ignacio Aparicio.

Headrick Rizik Alvarez & Fernández advised Imperial Brands PLC with Jaime M. Senior Fernández, Sarah de León, Eileen Jiménez Cantisano, Manuel Madera, César Ledesma, Pablo Garrido and Miguel Linera.

Involved fees earner: Ignacio Aparicio Ramos – Andersen Tax & Legal; Jaime Olleros – Andersen Tax & Legal; Jesús Durán – Dentons; Nicholas Plant – Dentons; Sarah De León – Headrick Rizik Alvarez & Fernández; Eileen Jiménez Cantisano – Headrick Rizik Alvarez & Fernández; César Ledesma – Headrick Rizik Alvarez & Fernández; Miguel Linera – Headrick Rizik Alvarez & Fernández; Manuel Madera Acosta – Headrick Rizik Alvarez & Fernández; Jaime Senior – Headrick Rizik Alvarez & Fernández; Gustavo Mena – Pellerano Nadal; Urania Paulino – Pellerano Nadal; Luis Rafael Pellerano – Pellerano Nadal; Belkys Génesis Rodríguez – Pellerano Nadal;

Law Firms: Andersen Tax & Legal; Dentons; Headrick Rizik Alvarez & Fernández; Pellerano Nadal;

Clients: Allied Cigar Corporation; Gemstone Investment ; Imperial Brands PLC;