s of Aug. 1, the retail and distribution operation is now at least four separate companies, a move that is expected to leverage some tax benefits, while also bringing the retailer closer to how its biggest competitor, JR Cigars/Santa Clara, is run. Products will now be purchased by Meier & Dutch, which in turn will sell the cigars and other items to its end consumer operations which include physical retail operations in Pennsylvania, four different online storefronts and a physical mail-in catalog.
“The long-rumored CI superstore project for Texas has been put on hold (until the) second half of 2015 once the offering is complete,” said a high-ranking official at another cigar manufacturer. The restructuring of the company’s business is said to create a situation in which Cigars International would be able to open up business in other states without putting its nexus in Pennsylvania, a state without a cigar tax, in jeopardy.
Despite the restructuring of Cigars International and the public offering of the larger ST Group, a sale of Cigars International is highly unlikely.
Movin' and shakin' at Scandinavian Tobacco Group/General Cigar.
http://halfwheel.com/parent-general-cigar-co-going-public-swedish-match-divests-ownership-stake/68444