British American Tobacco signed a deal to buy Croatia's sole cigarette producer TDR for 550 million euros ($600 million), to expand its business in the Balkans and central Europe, the companies said Monday.
BAT will also acquire other tobacco and retail assets from TDR owner the Adris Grupa, according to the deal signed on Saturday in London, a TDR statement said.
BAT has committed to keep TDR’s manufacturing facility in Kanfanar, in northwestern Croatia, operational for at least five years following completion of the acquisition, it added.
“This is an exciting acquisition for BAT, which will provide immediate scale in three core markets of Croatia, Bosnia and Serbia and establishes a sustainable platform to grow our business in central Europe,” BAT chief executive Nicandro Durante said in a statement.
"The proposed acquisition is subject to a number of anti-trust approvals and Adris shareholder consent," the statement said, adding that it is expected to be completed by October.
TDR, employs around 1,000 people, and is among the leading cigarette manufacturers in the Balkans region.