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Imperial Brands to sell other tobacco products business in the US

Published: 19:43 20 Mar 2018 AEDT

cigarettes
The global tobacco market has been shrinking as more people quit smoking

Imperial Brands PLC (LON:IMB) is to dispose its other tobacco products (OTP) business in the US as it seeks to streamline the business.  

The decision to sell the division, which includes roll-your-own brands, tubes, tips and cigarette papers, is part of an ongoing review of its assets.

READ: Imperial Brands maintains full-year guidance despite hit from Palmer & Harvey collapse

The company said the disposal simplifies its portfolio in the US, allowing it to focus on driving revenue growth from core tobacco brands and next generation products, such as e-cigarettes.

"We are clear on our strategic priorities and focus for growth and are proactively actioning capital reallocation opportunities to generate additional shareholder value," said chief executive Alison Cooper.

The global tobacco market has been shrinking as more people quit smoking or switch to e-cigarettes, prompting companies to offer more alternatives to cigarettes.

Imperial Brands said it would continue to invest in innovations for its next generation products, having recently launched its myblu e-vapour cigarettes in the UK and the US with plans to bring it into more markets in the next few months.

In tobacco, the focus is to deliver gains in its “priority markets” and so-called Growth Brands, including Lambert and Butler, Gauloises and Winston cigarettes, and Davidoff cigars.

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