GREENSBORO, N.C., Feb. 26, 2015 /PRNewswire/ -- Lorillard,
Inc. (NYSE: LO) today confirmed that David
Taylor, currently executive vice president, finance and
planning and chief financial officer of Lorillard, will serve as
the new chief executive of ITG Brands LLC ("ITG"). ITG will
be a newly formed subsidiary of Imperial Tobacco Group, PLC (LON:
IMT) following the closing of Lorillard's pending merger with
Reynolds American (NYSE: RAI) ("RAI") and RAI's divesture of
certain brands to Imperial Tobacco. The appointment will be
effective immediately upon the closing of such transactions.
Mr. Taylor has served as Lorillard's executive vice president,
finance and planning, and chief financial officer since January of
2008. Prior to joining Lorillard, Mr. Taylor was a senior
managing director with FTI Palladium Partners, a firm specializing
in providing interim management services. In that capacity,
he served as interim chief financial officer of Eddie Bauer
Holdings, Inc. from January 2006 to
November 2007.
"David has been instrumental in building Lorillard's outstanding
track record of growth, which culminated in the exciting
transactions we announced last summer," said Murray Kessler, Lorillard's chairman, president
and chief executive officer. "David's appointment is a
testament to all he has achieved at Lorillard. He has been
working closely with the team at Imperial in preparing for the
launch of ITG brands, and I know he will succeed as the head of
that business. As we work to complete the transactions, I
look forward to continuing to work together with David as we
execute on Lorillard's strategy and deliver performance."
"It is an honor to be named chief executive of ITG brands," said
Mr. Taylor. "I am proud of what we have accomplished at Lorillard
and excited about the future ahead as we look to create an
outstanding new business that brings Imperial's success to the
U.S."
Until the transactions are completed, Mr. Taylor, together with
Lorillard's senior management team, will remain focused on driving
success at Lorillard, executing on the Company's strategy as it
works to complete the proposed transactions, and will continue to
operate in the best interest of Lorillard and its shareholders
through the closing of the transactions.
As previously announced on July 15,
2014, Lorillard's Board of Directors approved a definitive
agreement with RAI in which Lorillard shareholders will receive,
for each Lorillard share, $50.50 in
cash and 0.2909 of a share in RAI at closing. The transaction
remains subject to regulatory approval and the additional customary
closing conditions contained in the merger agreement.
Separately, RAI has entered into an agreement with Imperial
Tobacco under which Imperial has agreed to purchase the KOOL,
Salem, Winston, Maverick and blu eCigs brands, as
well as other assets and liabilities, for a total consideration of
$7.1 billion in cash. Although
no assurance can be given if and when the transactions will be
completed because they remain subject to regulatory approval and
other customary closing conditions, the transactions are expected
to close, at substantially the same time, in the first half of
2015.
About Lorillard, Inc.
Lorillard, Inc. (NYSE: LO), through its Lorillard Tobacco
Company subsidiary, is the third largest manufacturer of cigarettes
in the United States. Founded in 1760, Lorillard Tobacco is
the oldest continuously operating tobacco company in the U.S.
Newport, Lorillard Tobacco's
flagship premium cigarette brand, is the top selling menthol and
second largest selling cigarette in the U.S. In addition to
Newport, the Lorillard Tobacco
product line has four additional cigarette brand families marketed
under the Kent, True, Maverick and Old Gold brand names. These five
brands include 43 different product offerings which vary in price,
taste, flavor, length and packaging. Lorillard, Inc., through
its other subsidiaries, is also a leading global electronic
cigarette company, marketed under the blu eCigs brand in the U.S.
and U.K. Newport, Kent,
True, Maverick, Old Gold and blu eCigs are the registered
trademarks of Lorillard and its subsidiaries. Lorillard
maintains its corporate headquarters and manufactures all of its
traditional cigarette products in Greensboro, North Carolina.
Forward-Looking Statements
This report contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
which represent the current expectations and beliefs of management
of Lorillard, Inc. ("Lorillard") concerning the proposed
transaction involving Reynolds American Inc. ("Reynolds American")
and Lorillard (the "transaction") and other future events and their
potential effects on Lorillard, including, but not limited to,
statements relating to anticipated financial and operating results,
the companies' plans, objectives, expectations and intentions, cost
savings and other statements, including words such as "anticipate,"
"believe," "plan," "estimate," "expect," "intend," "will,"
"should," "may," and other similar expressions. Such statements are
based upon the current beliefs and expectations of Lorillard's
management, are not guarantees of future results and are subject to
a significant number of risks and uncertainties. Actual results may
differ materially from the results anticipated in these forward
looking statements. Those factors include, without limitation: the
ability to obtain governmental approvals of the transaction or to
satisfy other conditions to the transaction on the proposed terms
and timeframe; the possibility that the transaction does not close
when expected or at all, or that the companies may be required to
modify aspects of the transaction to achieve regulatory approval;
the ability to realize the expected synergies resulting from the
transaction in the amounts or in the timeframe anticipated; the
ability to integrate Lorillard's businesses into those of Reynolds
American's in a timely and cost-efficient manner; the impact of
regulatory initiatives, including the regulation of cigarettes and
electronic cigarettes and a possible ban or regulation of the use
of menthol in cigarettes by the Food and Drug Administration, and
compliance with governmental regulations; the outcome of pending or
future litigation; health concerns, claims, regulations and other
restrictions relating to the use of tobacco products and exposure
to environmental tobacco smoke; the effect on pricing and
consumption rates of legislation, including actual and potential
federal and state excise tax increases, and tobacco litigation
settlements; continued intense competition from other cigarette and
electronic cigarette manufacturers; the continuing decline in
volume in the domestic cigarette industry; changes in the price,
quality or quantity of tobacco leaf and other raw materials
available for use in Lorillard's cigarettes; reliance on a limited
number of suppliers for certain raw materials; and other risks and
uncertainties, including those detailed from time to time in
Lorillard's periodic reports filed with the Securities and Exchange
Commission (the "SEC"), including Lorillard's Current Reports on
Form 8-K, Quarterly Reports on Form 10-Q and Annual Report on Form
10-K. In particular, we refer you to "Item 1A. Risk Factors" of
Lorillard's 2013 Annual Report on Form 10-K, which was filed with
the SEC on February 21, 2014, for additional information
regarding the risks and uncertainties discussed above as well as
additional risks and uncertainties that may affect Lorillard's
actual results. The forward-looking statements in this report are
qualified by these risk factors. Each statement speaks only as of
the date of this report (or any earlier date indicated in this
report) and Lorillard undertakes no obligation to update or revise
any forward-looking statements to reflect subsequent events or
circumstances. Investors, potential investors and others should
give careful consideration to these risks and uncertainties.
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SOURCE Lorillard, Inc.
