Reynolds American Inc. has announced the sale of the rights to it's Natural American Spirit businesses to the Japan Tobacco Group. The sale is a cash transaction worth about $5 billion.
Selling the rights to the American Spirit brand is not the same as selling ownership of the cigarettes.
The American Spirit brand in the U.S will remain under the Reynolds American umbrella.
The JT Group will inherit a global market for American Spirit, which sells well in Japan, Germany and Switzerland. The international companies being sold employ about 280 people, primarily in Europe and Japan.
Susan Cameron is Reynolds Americans president and CEO.
In a statement she said the company wanted a buyer with an established global infrastructure. She says Reynolds can now focus solely on growing the brand in the U.S. market.