View of the Reynolds American building
|Public (NYSE: RAI)
S&P 500 Component
|Headquarters||Winston-Salem, North Carolina, USA|
|Susan Cameron, President and CEO|
Number of employees
|Footnotes / references
Reynolds American, Inc. (NYSE: RAI) is an American tobacco company and is the second-largest tobacco company in the United States. Its holdings include R. J. Reynolds Tobacco Company, American Snuff Company (formerly Conwood Company), Santa Fe Natural Tobacco Company and Niconovum AB.
Reynolds American's subsidiaries manufacture and market a variety of tobacco products, including cigarettes (Newport, Camel, Pall Mall, Kent, Doral, Misty, Capri and Natural American Spirit brands) and moist snuff (Grizzly and Kodiak brands).
In 2010, Reynolds American's operating companies sold about 28% of all cigarettes sold in the U.S.
In July 2014, Reynolds American announced the purchase of Lorillard Tobacco Company in a deal valued at $27 billion.
In July 2004 the U.S. business of British American Tobacco (Brown & Williamson) was combined with that of R. J. Reynolds Tobacco Company (R. J. Reynolds), under the R. J. Reynolds name. R. J. Reynolds and Brown & Williamson were the second and third-ranking U.S. tobacco companies prior to the combination. When they combined, R. J. Reynolds became a subsidiary of Reynolds American, with BAT holding a 42% share of RAI. Santa Fe Natural Tobacco Company, which manufactures the additive-free Natural American Spirit brand of tobacco products, also became a subsidiary of Reynolds American at that time.
Prior to becoming RAI operating companies, both R. J. Reynolds and Santa Fe were part of R. J. Reynolds Tobacco Holdings, Inc., which traded on the New York Stock Exchange as RJR. RJR became a subsidiary of RAI in July 2004. R. J. Reynolds was established as a tobacco company in Winston-Salem, North Carolina in 1875.
In 2006, Reynolds American expanded into the smokeless tobacco category, with the acquisition of Conwood, the second-biggest smokeless tobacco company in the United States. Conwood manufactures and markets moist and dry snuff, loose leaf, plug and twist chewing tobaccos. At the time of the acquisition, 70% of Conwood's sales came from the growing moist-snuff segment, with the Grizzly brand showing the fastest growth. Grizzly's continued growth since 2006 has made it the best-selling brand in the moist-snuff category.
In 2008, RAI was recognized as a leader in corporate sustainability by being added to the membership in the 2008-2009 Dow Jones Sustainability North America Index (DJSI North American). RAI is the only U.S. tobacco company and one of 125 North American companies on the index. Selection for the Index is based on performance in a number of economic, environmental and social criteria.
The Wall Street Journal reported in November 2009 that Reynolds American intended to buy Sweden-based Niconovum AB, a maker of products such as nicotine gum, for $44.5 million. The deal was completed in December.
Former Chairman, President and CEO of Reynolds Tobacco Daniel "Daan" Delen assumed the positions of President and CEO of Reynolds American on March 1, 2011, after former president, CEO and chairwoman Susan Ivey announced she would retire as chairwoman November 1, 2010 and as President and CEO effective February 28, 2011.
Ivey, now known as Susan Cameron, returned as CEO in April 2014 after being elected by the board of directors.
In July 2014, Reynolds American, Inc. announced it would buy Lorillard Tobacco Company for roughly $25 billion. The merge between the companies is a result of slowed sales. The deal is valued at $27.4 billion, including debt. Reynolds agreed to pay $68.88 in cash and stock for every Lorillard share and assume its debt. The deal also included the sale of the Kool, Winston, Salem, and blu brands to Imperial for $7.1 billion.
American Legislative Exchange Council
- "REYNOLDS AMERICAN INC 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. February 11, 2014.
- "REYNOLDS AMERICAN INC 2014 Q1 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. April 23, 2014.
- Reynolds American 10-K SEC Filing report. Retrieved November 15, 2012.
- "Fortune 500". Fortune. CNNMoney.com. 4 May 2009. Retrieved 6 July 2009.
- "Reynolds American, Inc." (PDF). Retrieved 10 May 2011.
- "Reynolds American's profits climb". Greensboro News Record. 21 April 2010. Retrieved 10 May 2011.
- "Reynolds American Inc.". FORM 8-K. Securities and Exchange Commission. 30 July 2004. Retrieved 6 July 2009.
- "R.J. Reynolds Tobacco Co. Inc.". BusinessWeek. The McGraw-Hill Companies. Retrieved 6 July 2009.
- "Reynolds American Moves into Smokeless Tobacco". Convenience Store News. Nielsen Business Media, Inc. 26 April 2006. Retrieved 6 July 2009.
- "Fitch Affirms Reynolds American's IDR at 'BBB-'; Outlook Stable" (Press release). BusinessWire. 2009-06-24. Retrieved 2009-07-06.
- "Sustainability Leaders" (PDF). Dow Jones Sustainability Indexes. SAM Indexes GmbH. 3 March 2009. Retrieved 6 July 2009.
- "Corporate Sustainability Assessment Criteria". Dow Jones Sustainability Indexes. SAM Indexes GmbH. Retrieved 6 July 2009.
- "Report: Reynolds in Talks to Acquire Swedish Company". Winston-Salem Journal. 2009-11-10. Retrieved 2009-11-10.[dead link]
- "Reynolds American closes deal with Swedish company". Winston-Salem Journal. 2009-12-10. Retrieved 2009-12-10.[dead link]
- Craver, Richard (2010-10-15). "Susan Ivey, top executive at Reynolds American, to retire in February". Winston-Salem Journal. Retrieved 2010-10-15.
- Arcieri, Katie. "Former Reynolds CEO returns to lead company; current CEO Delen to retire". Retrieved 15 July 2014.
- Cavale, Siddharth (15 July 2014). "Reynolds American to buy Lorillard for about $25 billion". Reuters. Retrieved 15 July 2014.
- Calia, Michael (15 July 2014). "Reynolds American to Buy Lorillard for $25 Billion". Wall Street Journal. Retrieved 15 July 2014.
- De la Merced, Michael; Bray, Chad (15 July 2014). "Reynolds American to Buy Lorillard for $27.4 Billion". New York Times. Retrieved 15 July 2014.
- Mangan, Dan (July 15, 2014). "Feeling blu? E-cig company spun off in major tobacco deal". CNBC.
- Official website
- Reynolds American political contributions from Influence Explorer at the Sunlight Foundation