Imperial Tobacco Group has announced that it has agreed to acquire 100% of CBHC Inc, which trades as Commonwealth Brands, from Houchens Industries for $1.9bn in cash.

In the year to 30 September 2006, Commonwealth Brands generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $174m and Imperial anticipates that the acquisition will be completed by April 2007.
Commonwealth Brands is based in Bowling Green, Kentucky and is the fourth largest cigarette manufacturer in the US, with a 3.7% share of the 376bn US cigarette market.
Commonwealth Brands manufactures and sells five discount cigarette brands across the US and in Puerto Rico, which together account for 13.2% per cent of the discount segment.
The two key brands are USA Gold and Sonoma. USA Gold is the eighth best-selling cigarette brand in the US and Sonoma the fourteenth. Commonwealth Brands? other cigarette brands are Montclair, Malibu and Riviera.