Earlier today, J. Cortès finalized its agreement to purchase Oliva Cigar Co.
For much more information about the background of both companies and the deal, click here.
The deal creates a company with annual revenues north of $100 million, 3,000 employees and strong presences in both cheaper, machine made cigars—J. Cortès’ speciality—and premium cigars, Oliva’s business.
Formally, the deal closed today and becomes effective tomorrow.
Sources have previously told halfwheel J. Cortès bid was selected over those from Scandinavian Tobacco Group (STG), owners of General Cigar Co., and at least one other company.
José Oliva will stay on as the company’s ceo while his brother Gilberto Oliva Jr. will continue to oversee the company’s Nicaraguan growing operations.
The other two siblings are scheduled to remain with the company through the end of the year. Carlos Oliva runs Oliva’s Estelí-based factory and Jeannie Oliva manages the company’s U.S. offices.
Oliva produces Serie G, Serie O, Serie V, Serie V Melanio and Connecticut Reserve under its own name. The company also makes Cain and NUb as part of its STUDIO TOBAC division and a popular value-priced line, Flor de Oliva, which is sold in bundles.
In addition, the company sells a Dutch dry cigar, Viejo Mundo, and a flavored cigar, NUb Café, though neither are produced by Oliva.
The companies are stating very little will change including both how Oliva sells cigars in the U.S. and abroad. Brian Shapiro, Oliva’s director of international sales, told halfwheel the company has no plans to change its distribution model in Europe at this time.