STG said it has signed an agreement to divest two fine-cut tobacco brands, with the previously disclosed Germany-focused sale expected to close before year-end 2026.
Scandinavian Tobacco Group A/S said it has signed an agreement to divest two fine-cut tobacco brands, confirming the previously disclosed sale of BREAK and Moro to Japan Tobacco Inc. for EUR 176 million. STG has said the transaction, equal to a pretax enterprise value of about DKK 1.3 billion and an estimated post-tax transaction value of roughly DKK 1.0 billion, remains subject to customary closing conditions including anti-trust approvals and is expected to complete before the end of 2026. Based on the group’s 2025 full-year results, the two brands accounted for about 4% of reported net sales and gross profit before special items, while the impact on EBITDA before special items is around 6% because related operating expenses will not transfer to JT. Fine-cut tobacco represented approximately 12% of the group’s reported net sales in 2025. Chief Executive Officer Niels Frederiksen said the divestment advances STG’s Focus2030 strategy, arguing the brands’ potential can be better realized under new ownership while STG sharpens its focus on categories with stronger long-term value creation. The company has said proceeds will be used to reduce debt, lower leverage, and increase strategic and financial flexibility.