Altria Buys Maker of Nat Sherman Cigars

By Joshua Jamerson 

Altria Group Inc. said it acquired the privately held maker of Nat Sherman cigars and cigarettes, expanding Altria's offerings as it faces increasing competition.

Financial terms of the deal weren't disclosed.

Sherman Group Holdings LLC's cigarettes are manufactured in Greensboro, N.C., and the company operates a flagship store in New York. Marty Barrington, Altria's chairman and chief executive, said the deal would give Nat Sherman, whose cigarettes are currently in limited distribution throughout the U.S., access to Altria's retail distribution, brand management and consumer expertise.

The move comes as Altria, the U.S.'s largest tobacco company, has been facing stronger competition from No. 2 rival Reynolds American Inc. On Tuesday, British American Tobacco PLC said Reynolds had agreed to its sweetened acquisition offer of $49.4 billion for the 57.8% of Reynolds that it doesn't already own, a deal that will create the world's largest listed tobacco company by revenue and market value.

Altria stock, which has climbed 19% in the past 12 months, edged up 0.9% in morning trading.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

January 17, 2017 10:31 ET (15:31 GMT)

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