Published: December 4, 2013
Tobacco giant buys 20% stake in distributor Megapolis.
Tobacco manufacturer Philip Morris International (PMI) has acquired a 20% equity interest in Megapolis Distribution, the parent company of its distributor in Russia CJSC TK Megapolis. The purchase price was US$750mn, with a possible additional payment of up to US$100mn contingent on the company’s performance over the next four fiscal years.
Megapolis handles approximately 70% of the cigarettes sold in Russia, providing a useful foothold for PMI’s planned expansion in the country. Concurrently, Japan Tobacco International has also agreed to acquire a 20% stake in Megapolis Distribution.