8-KMaterial AgreementsExhibits & Filings

ALTRIA GROUP, INC. 8-K Report, Material Agreement (Nov 1, 2007)

Filed November 1, 2007For Securities:MO

Summary

Altria Group, Inc. (MO) announced a significant strategic acquisition on November 1, 2007, entering into an agreement to purchase 100% of John Middleton, Inc. This company is a prominent manufacturer of machine-made large cigars. The total purchase price for John Middleton, Inc. is $2.9 billion in cash. After accounting for approximately $700 million in tax benefits derived from the transaction's terms, the net cost to Altria is reduced to $2.2 billion. This acquisition represents a move by Altria to expand its presence in the growing large cigar market. Investors should note that the transaction is subject to customary regulatory approvals, and further details regarding the deal's impact on Altria's financial structure and future growth strategies would be important to monitor as the deal progresses towards completion.

Key Highlights

  • 1Altria Group, Inc. entered into an agreement to acquire 100% of John Middleton, Inc.
  • 2John Middleton, Inc. is a leading manufacturer of machine-made large cigars.
  • 3The total purchase price for the acquisition is $2.9 billion in cash.
  • 4The net cost of the acquisition is reduced to $2.2 billion after considering approximately $700 million in present value tax benefits.
  • 5The transaction is contingent upon receiving necessary regulatory approvals.
  • 6The announcement was made via a press release dated November 1, 2007, filed as an exhibit to the 8-K.

Frequently Asked Questions

This 8-K filing serves to report a material definitive agreement. Specifically, Altria announced its entry into an agreement to acquire John Middleton, Inc., a significant transaction that impacts the company's business operations and strategy.

The acquisition has a total price of $2.9 billion in cash. However, the net cost is effectively $2.2 billion due to an estimated $700 million in present value tax benefits realized from the transaction's structure.

Yes, the transaction is subject to obtaining the necessary regulatory approvals. Until these approvals are secured, the deal is not guaranteed to close.

John Middleton, Inc. is a manufacturer of machine-made large cigars, indicating Altria's strategic expansion into this particular segment of the tobacco market.