Jan 18, 2011

Reynolds Sells Pipe Tobacco, Roll-Your-Own Biz

Reynolds American said it has agreed to sell its Lane Limited business to Scandinavian Tobacco Group for $205 million in cash.

Lane manufactures a variety of tobacco products, including Kite and Bugler roll-your-own tobacco, and Captain Black pipe tobacco, and contributes $0.04 per share to Reynolds Americans annual earnings, producer of Camel cigarettes.

Reynolds American ( RAI - news - people ) said the sale allows it devote energy and resources to primary growth categories within its businesses.

Reynolds American shares are trading up slightly Friday.

Rival Altria Group , producer of Marlboro cigarettes( MO - news - people ) is trading up almost .1% Friday, while Lorillard trades up nearly .1% as well.

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