Swedish Match to demerge its cigar business.

Swedish Match, a Swedish multinational tobacco company, is set to demerge its cigar business. Financial terms are not disclosed. "This announcement is another milestone toward achievement of our aspiration to become an entirely smokefree organization with a clear leadership position in oral reduced risk products, including ZYN, the largest modern oral brand in the US and globally. The cigar business continues to perform very well and is seeing positive industry dynamics, which we believe will make it an attractive stand-alone company, balancing strong cash flow generation with attractive growth. The new cigar company will have the ability to explore a wider scope of growth opportunities within its autonomous and focused strategic agenda and to establish efficient and tailored operational and legal structures, geared for long-term value creation," Lars Dahlgren, Swedish Match, President and CEO.