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Pyxus to consider strategic alternatives
Posted on Thursday, 26 March 2020 13:22
Global agricultural company Pyxus International has announced it is launching a strategic review, which could include a possible sale of the business.
The company has set up a special committee to get the ball rolling on the process, which is chaired by Martin R Wade.
Other potential strategic options for the business may include a recapitalisation or a transaction.
Pyxus has not set a timetable for the completion of the review process and there is no guarantee that it will result in a sale or another deal.
The company also stated it does intend to disclose any developments until it has entered into a definitive agreement and will only reveal further information when required.
Pyxus previously initiated plans to evaluate a potential partial monetisation of interests in its non-tobacco subsidiaries and launched a global operations efficiency programme to help position the business for long-term success.
However, the group stated now is the right time to explore a broader range of strategic alternatives.
Located in North Carolina, Pyxus is an international storage, sales and distribution company which sells leaf tobacco and processing fees from tobacco manufacturers worldwide.
Its offerings include a range of legal cannabis, e-liquids, industrial hemp and cannabidiol products.
The group works with over 300,000 farmers and operates in 30 countries globally.
During the nine months ended 31st December 2019, Pyxus posted sales of USD 1.02 billion, down 15.7 per cent from USD 1.21 billion in the corresponding period of 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 151 deals targeting tobacco manufacturers announced worldwide in 2019.
The largest of these took the form of an acquisition and involved Altria Group, via Helix Innovations, buying an 80.0 per cent stake in Burger Sohne Holding’s on! pouch business for USD 372.00 million.
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