Scandinavian Tobacco Group, the leading tobacco firm, has announced the acquisition of XQS International, a maker of tobacco alternative products.
The transaction value consists of an upfront payment as well as an earn-out agreement. Assuming all targets are met, the total purchase price will be about 150 million DKK ($22 million) and it will be fully financed by cash at hand and debt.
In 2022, XQS International’s reported net sales were about 50 million DKK ($7.4 million) with a low single-digit EBITDA margin and a total volume of 3 million cans.
XQS International describes itself as one of the leading brands in the tobacco-free segment, with a product range comprising both nicotine pouches and nicotine-free pouches. The brand claims its primary focus and strength is on flavours, and it offers pouches in both “light” and “strong” nicotine strengths.
Terms and conditions have been agreed and the acquisition is expected to close shortly.
Source: Scandinavian Tobacco Group / XQS International