Scandinavian Tobacco Group to Sell Two Brands to Japan Tobacco for $195 Million

Scandinavian Tobacco Group has reached an agreement to sell two of its fine-cut tobacco brands to Japan Tobacco Inc. in a transaction with a pre-tax enterprise value of approximately $195 million (DKK 1.3 billion). The Danish company announced the deal on Thursday, marking a strategic divestment from a segment of its portfolio.

Details of the Transaction

The agreement covers the sale of the BREAK and Moro fine-cut tobacco brands, which are primarily sold in the German market. According to the announcement, Japan Tobacco will acquire the brands for a cash consideration of €176 million.

The deal is subject to customary regulatory approvals. Both companies expect the transaction to close by the end of the year.

Financial Implications

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The divested brands represent a notable, though not core, part of Scandinavian Tobacco Group's business. In 2025, the brands accounted for:

• Approximately 4% of the company's reported net sales and gross profit before special items.
• Roughly 6% of its EBITDA before special items.

This sale allows Scandinavian Tobacco Group to streamline its portfolio and reallocate capital. For investors, the divestment provides a cash infusion from non-strategic assets and signals a sharpened focus on the company's core operations.