BAT to buy Croatian tobacco business for 550 million euros
LONDON, June 1 (Reuters) - British American Tobacco has agreed to buy tobacco company TDR from Croatia's Adris Grupa for 550 million euros ($600.05 million) to increase its scale in Croatia, Bosnia and Serbia.
As tobacco consumption is declining in many Western markets, tobacco companies are seeking to expand in new markets, or to consolidate in order to reduce costs and boost profits.
British American, the world's second largest international tobacco company, also recently bid to takeover Souza Cruz , Brazil's largest tobacco company.
Adris, which also operates in the tourism and insurance industries, said in September it might seek a partner for its cigarette unit as rising global competition was hurting its business.
The deal represents a multiple of about 12.5 times TDR's 2014 EBITDA of 44 million euros.
($1 = 0.9166 euros) (Reporting by Martinne Geller; editing by Jason Neely)
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