Philip Morris International Inc. agreed to buy Productora Tabacalera de Colombia, Protabaco Ltda. for $452 million, its second acquisition this month as tobacco demand rises in emerging markets.
The purchase of Colombia's second-largest tobacco company needs regulatory approval and is expected to be completed within six months, New York-based Philip Morris said today.
The maker of Marlboro cigarettes bought Colombia's biggest tobacco company, Compania Colombiana de Tabaco SA, in 2005.
Philip Morris, the world's largest publicly traded tobacco company, agreed to buy Swedish Match AB's South African unit for $224 million last week.
Spun off last year from Altria Group Inc., Philip Morris generates all its sales outside the U.S.
Revenue from Latin America and Canada rose 11 percent in the first quarter while falling 12 percent in Europe, the company said in April. Shipments in Colombia declined during the period, Philip Morris said.
Closely held Protabaco sells the Mustang, Premier and President brands. It had about 32 percent of Colombia's cigarette sales last year, with revenue of $107.6 million and shipments of 6.1 billion cigarettes, Philip Morris said. -- Bloomberg News
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