Swedish Match Acquires Bogaert Cigars

Swedish Match Acquires Bogaert Cigars

• Portfolio consists of machine made cigars and cigarillos
• Primary markets are France, Germany, Netherlands, Belgium
• Bogart and Hollandia brands, as well as private label products
• Production in Belgium and Indonesia
• Annual turnover of approximately 20 MEUR

Swedish Match has agreed to purchase Bogaert Cigars, a privately held cigar
company that has been producing cigars since 1937. The company is headquartered
in Belgium with production facilities in Jabbeke, Belgium and Pasuruan,
Indonesia. Bogaert has an annual turnover of approximately 20 MEUR, and
approximately 600 employees. Yearly production volumes are currently some 270
million cigars.

The Bogaert cigar portfolio consists of machine-made cigars/cigarillos of
own-brands (Bogart and Hollandia) as well as private label. The primary markets
are France, Germany, Netherlands and Belgium, which together comprise more than
90 percent of company turnover.

In this transaction, Swedish Match would acquire 100 percent of the shares in
Bogaert Cigars NV (production and sales/marketing in Belgium) and PT Java Cigar
Manufacturing (production in Indonesia).

“We are very excited about this transaction,” said Sven Hindrikes, President and
CEO of Swedish Match. “The Bogaert Cigar business fits very well with our
existing organization, allows the Company to expand its portfolio of products,
and helps Swedish Match to increase its presence in fast growing segments in
several important European markets.”

Details of the purchase price have not been disclosed.  
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Swedish Match is a global Group of companies with a broad assortment ofmarket-leading brands in smokeless tobacco products, cigars, pipe tobacco and
lights products. The Group's global operations generated sales of 12,622 MSEK
for the twelve month period ending March 31, 2007. Swedish Match shares are
listed on Stockholmsbörsen (SWMA).
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Swedish Match AB (publ), SE-118 85 Stockholm
Visiting address: Rosenlundsgatan 36, Telephone: +46 8 658 02 00
Corporate Identity Number: 556015-0756
www.swedishmatch.com