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BRITISH AMERICAN TOBACCO PLC - British American Tobacco to acquire TDR

Release Date: 01/06/2015 09:01
Code(s): BTI     PDF:  
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British American Tobacco to acquire TDR

British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")



                      British American Tobacco to acquire TDR

         British American Tobacco to expand its business in Central Europe

British American Tobacco (“BAT”) has signed an agreement to acquire TDR d.o.o. and other tobacco and
retail assets (“TDR”) from Adris Grupa d.d. (“Adris”) for a total enterprise value of €550 million.

TDR is the leading independent cigarette manufacturer in Central Europe with a market leading position
in Croatia and a position of scale in Bosnia and Serbia which will provide BAT with the opportunity to
significantly grow its business in the region.

By combining its existing business in the region together with TDR, BAT expects to benefit from highly
skilled people, well established brands, enhanced regional leaf processing capabilities, a local high
quality factory and print facility and strong relationships with distributors and retailers in these markets.

As part of the transaction BAT has committed to keeping TDR’s manufacturing facility in Kanfanar,
Croatia operational for at least five years following completion of the acquisition.

The transaction represents a multiple of approximately 12.5 times (based on TDR’s financial year ending
31 December 2014 EBITDA of approximately €44 million).

Nicandro Durante, BAT’s Chief Executive, commented: “This is an exciting acquisition for BAT, which will
provide immediate scale in three core markets of Croatia, Bosnia and Serbia and establishes a
sustainable platform to grow our business in Central Europe”.

The proposed acquisition is subject to a number of anti-trust approvals and Adris shareholder consent.
The transaction is expected to complete in October 2015.

ENQUIRIES

Press Office                                      Investor Relations
Will Hill / Anna Vickerstaff                      Mike Nightingale / Rachael Brierley
+44 (0)207 845 2888 (24 hours)                    +44 (0)207 845 1180 / 1519


1 June 2015

Sponsor: UBS South Africa (Pty) Ltd

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