Reynolds American

From Infogalactic: the planetary knowledge core
(Redirected from Reynolds American, Inc.)
Jump to: navigation, search
Reynolds American, Inc.
Public (NYSE: RAI)
S&P 500 Component
Industry Tobacco
Founded 2004
Headquarters Winston-Salem, North Carolina, USA
Key people
 Susan Cameron, President and CEO
Revenue
  • Decrease US$ 8.236 billion (2013) [1]
  • Decrease US$ 8.304 billion (2012) [1]
  • Increase US$ 3.132 billion (2013) [1]
  • Decrease US$ 2.214 billion (2012) [1]
  • Increase US$ 1.718 billion (2013) [1]
  • Decrease US$ 1.272 billion (2012) [1]
Total assets
  • Decrease US$ 15.402 billion (2013) [2]
  • Increase US$ 16.557 billion (2012) [1]
Total equity
  • Decrease US$ 5.167 billion (2013) [2]
  • Decrease US$ 5.257 billion (2012) [2]
Number of employees
 5,400 (2011)
Website www.reynoldsamerican.com
Footnotes / references
[3]

Reynolds American, Inc. (NYSE: RAI) is an American tobacco company and is the second-largest tobacco company in the United States.[4] Its holdings include R. J. Reynolds Tobacco Company, American Snuff Company (formerly Conwood Company), Santa Fe Natural Tobacco Company and Niconovum AB.

Reynolds American's subsidiaries manufacture and market a variety of tobacco products, including cigarettes (Newport, Camel, Pall Mall, Kent, Doral, Misty, Capri and Natural American Spirit brands) and moist snuff (Grizzly and Kodiak brands).[5]

In 2010, Reynolds American's operating companies sold about 28% of all cigarettes sold in the U.S.[6]

In July 2014, Reynolds American announced the purchase of Lorillard Tobacco Company in a deal valued at $27 billion.

History

Reynolds American was formed in January 2004[7] and began trading publicly on the New York Stock Exchange as RAI in August 2004.[5]

In July 2004 the U.S. business of British American Tobacco (Brown & Williamson) was combined with that of R. J. Reynolds Tobacco Company (R. J. Reynolds), under the R. J. Reynolds name. R. J. Reynolds and Brown & Williamson were the second and third-ranking U.S. tobacco companies prior to the combination. When they combined, R. J. Reynolds became a subsidiary of Reynolds American, with BAT holding a 42% share of RAI.[7] Santa Fe Natural Tobacco Company, which manufactures the additive-free Natural American Spirit brand of tobacco products, also became a subsidiary of Reynolds American at that time.[7]

Prior to becoming RAI operating companies, both R. J. Reynolds and Santa Fe were part of R. J. Reynolds Tobacco Holdings, Inc., which traded on the New York Stock Exchange as RJR. RJR became a subsidiary of RAI in July 2004.[7] R. J. Reynolds was established as a tobacco company in Winston-Salem, North Carolina in 1875.[8]

In 2006, Reynolds American expanded into the smokeless tobacco category, with the acquisition of Conwood, the second-biggest smokeless tobacco company in the United States. Conwood manufactures and markets moist and dry snuff, loose leaf, plug and twist chewing tobaccos. At the time of the acquisition, 70% of Conwood's sales came from the growing moist-snuff segment, with the Grizzly brand showing the fastest growth.[9] Grizzly's continued growth since 2006 has made it the best-selling brand in the moist-snuff category.[10]

In 2008, RAI was recognized as a leader in corporate sustainability by being added to the membership in the 2008-2009 Dow Jones Sustainability North America Index (DJSI North American). RAI is the only U.S. tobacco company and one of 125 North American companies on the index.[11] Selection for the Index is based on performance in a number of economic, environmental and social criteria.[12]

The Wall Street Journal reported in November 2009 that Reynolds American intended to buy Sweden-based Niconovum AB, a maker of products such as nicotine gum, for $44.5 million.[13] The deal was completed in December.[14]

Former Chairman, President and CEO of Reynolds Tobacco Daniel "Daan" Delen assumed the positions of President and CEO of Reynolds American on March 1, 2011,[15] after former president, CEO and chairwoman Susan Ivey announced she would retire as chairwoman November 1, 2010 and as President and CEO effective February 28, 2011.[16]

Ivey, now known as Susan Cameron, returned as CEO in April 2014 after being elected by the board of directors.[17]

In July 2014, Reynolds American, Inc. announced it would buy Lorillard Tobacco Company for roughly $25 billion. The merge between the companies is a result of slowed sales. The deal is valued at $27.4 billion, including debt.[18][19] Reynolds agreed to pay $68.88 in cash and stock for every Lorillard share and assume its debt.[20] The deal also included the sale of the Kool, Winston, Salem, and blu brands to Imperial for $7.1 billion.[21] The merger became official June 12, 2015.[22]

A legal notice filed July 29, 2015 said that Reynolds must get a county permit to make Newports at its Tobaccoville plant, so for 18 months Imperial will make Newports and Reynolds will make three brands it sold.[23]

American Legislative Exchange Council

David Powers, representing Reynolds American, sits on the Private Enterprise Board of the American Legislative Exchange Council (ALEC) as Treasurer.[24]

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 2.2 Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ Reynolds American 10-K SEC Filing report. Retrieved November 15, 2012.
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ 5.0 5.1 Lua error in package.lua at line 80: module 'strict' not found.
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ 7.0 7.1 7.2 7.3 Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.[dead link]
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.[dead link]
  15. ↑ http://reynoldsamerican.com/management.cfm
  16. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ http://www.alec.org/about-alec/private-enterprise-board/

External links

Retrieved from "https://infogalactic.com/w/index.php?title=Reynolds_American&oldid=889303"