Imperial_Tobacco

Imperial Tobacco

Imperial Tobacco Group PLC is the world's fourth largest international tobacco company. It is the second largest UK-based tobacco company by global sales. It is Germany's second largest tobacco company following its purchase of Reemtsma Cigarettenfabriken GmbH in 2003 which added brands such as Davidoff, Peter Stuyvesant and West to its portfolio. In 2007 Imperial Tobacco entered the United States tobacco market with its $1.9 billion acquisition of Commonwealth Brands Inc, the fourth largest tobacco company in the US. Imperial Tobacco's corporate headquarters are in Bristol, England. It has 58 factories operating around the world, and employs some 40,000 people.

In February 2008, Imperial acquired European peer Altadis with brands including Fortuna, Gauloises Blondes and Gitanes.

History

The Imperial Tobacco Company was created in 1901 through the amalgamation of thirteen British tobacco and cigarette companies comprising W.D. & H.O. Wills of Bristol (the leading manufacturer of the time), John Player & Sons of Nottingham and 11 other independent family businesses, which were being threatened by competition from the United States in the form of James Buchanan Duke and his American Tobacco Company. The original merger took place between W. D. & H. O. Wills of Bristol and Stephen Mitchell & Son of Glasgow. The company's first Chairman was William Henry Wills of the Wills Company. Subsequently the smaller companies in the group including Lambert & Butler, William Clarke & Son, Franklyn Davey, Edwards Ringer, J & F Bell and F & J Smith were absorbed by the larger, with Wills and Players eventually emerging as the UK market leaders.

In 1902 the then Imperial Tobacco Company and the American Tobacco Company agreed to form a joint venture; the British-American Tobacco Company Ltd. The parent companies agreed not to trade in each other's domestic territory and to assign trademarks, export businesses and overseas subsidiaries to the joint venture. American Tobacco sold its share in 1911 but Imperial maintained an interest in British American Tobacco until 1980.

In 1973, having become increasingly diversified (restaurant chains, food services and brands, distribution etc), Imperial Tobacco Company became the Imperial Group Limited, later Imperial Group PLC. The company was acquired by the conglomerate Hanson Trust plc in 1986, at a price of £2.5 billion. Hanson undertook a major reorganisation of the company; divestment netted £2.3 billion, leaving Hanson with the hugely profitable tobacco business for "next to nothing." These sales included:

Courage Limited to Elders
Golden Wonder to Dalgety
Finlays was sold to A J Patel
Wholesaling arm of Sinclair and Collis was sold to Palmer & Harvey
Imperial Hotels and Catering to Trust House Forte
Ross Frozen Foods to United Biscuits

In 1996, following a decision to concentrate on core tobacco activities, Hanson de-merged Imperial and it was listed as an independent company on the UK stock exchange. A US listing followed in 1998.