General Cigar Selling Mass-Market Business

General Cigar Holdings Inc. is selling its mass-market cigar business that includes brands such as Garcia y Vega and Tiparillo to the Swedish cigar maker Swedish Match for $200 million. General Cigar executives said the sale will allow the company to focus on its larger premium cigar business, which includes such brands as Macanudo, Partagas and Punch. It plans to use sale proceeds to reduce debt and make investments or buy other premium cigar businesses. Included in the sale are General Cigar manufacturing plants in Dothan, Ala., and Santiago, Dominican Republic. No layoffs are expected at the plants. New York-based General Cigar will continue to supply tobacco to Swedish Match for the brands being sold. Those brands also include White Owl and Tijuana Smalls. Stockholm-based Swedish Match will sell some General Cigar premium brands in the U.S. The deal is subject to approval by regulators but is expected to close in April. General Cigar shares rose $1 to close at $10.50 on the New York Stock Exchange, while Swedish Match’s American depositary receipts gained 25 cents to close at $33 on Nasdaq.