Philip Morris International’s $16 Billion Recommended Cash Offer for Swedish Match

In UK DLA Piper, advised on the matter.

Davis Polk & Wardwell advised Philip Morris International Inc. with a team including

DLA Piper advised Philip Morris International Inc. with a team including Tom Heylen (Picture – Corporate M&A), Tracey Renshaw (Corporate M&A).

Roschier advised Philip Morris International Inc. with a team including

Simpson Thacher & Bartlett advised Bank of America Europe Designated Activity Company, Citibank Europe with a team including

Philip Morris Holland Holdings B.V., an Affiliate of Philip Morris International Inc. (PMI), announced its recommended public offer to the shareholders of Swedish Match AB (Swedish Match), a public limited company with shares listed on Nasdaq Stockholm. The offer values Swedish Match at approx. USD16 billion.

Philip Morris Holland also announced its $17 billion bridge credit agreement provided by Citibank Europe PLC and Bank of America Europe Designated Activity Company.

Traded on the New York Stock Exchange, PMI is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. This transaction represents a significant milestone in the delivery of PMI’s mission to replace cigarettes with science-based, less harmful alternatives. Since 2008, PMI has invested more than USD9 billion in researching, developing, and commercialising its smoke-free products, and aims to be a predominantly smoke-free company by 2025, with more than half of its net revenues coming from smoke-free products. 

Swedish Match is a leading developer, manufacturer and distributor of global brands in the smoke-free product segment. PMI and Swedish Match share a mutual vision of a world without cigarettes and a commitment to developing, scientifically substantiating, and responsibly commercialising smoke-free products that are less harmful than cigarettes. As PMI continues to evolve its business for the long term, it believes that the two companies would be a perfect pairing of strategic vision, culture, and enterprise. 

The DLA Piper team is led by London-based Corporate partners Tom Heylen, Managing Partner of the firm’s London office, and Tracey Renshaw, assisted by senior associates Sarah Riley and Isabella Gee, and associates Freddie De Boise and Kirsty Underhill. The DLA Piper team in the US is led by partners Stasia Kelly, senior advisor to the US Chair of the firm, Kathleen Ruhland, Global Co-Chair and US chair of the Corporate practice, Jonathan Klein, Chair of the US Mergers and Acquisitions practice, and Sanjay Shirodkar, Co-Chair of the Public Company and Corporate Governance practice, and associates Jenna Stewart and Brian Wohlberg. DLA Piper is providing support in Life Sciences, led by sector Global Co-Chair Marco de Morpurgo (EU) and Christopher Gismondi (US); Patents, led by Dr Philipp Cepl (EU) and Larissa Bifano, US chair of the Patent Prosecution practice; and in SESG, led by Sean Faehrmann of DLA Piper Business Advisory. 

Roschier’s core advisory team comprised Jens Bengtsson, Malin Leffler, Ola Sandersson, Erik Ellenius and Lovisa Eliasson together with Veronica Stiller, Björn Johansson Heigis, Kristian Hugmark, Jenny Welander Wadström, Marcus Kern Fahlander, Emil Larsson, Ellen Pettersson, Rebecca Huselius, Peder Boström, Alexis Hekmatfar, Giada Maglione, Jacob Giesecke, William Silfversten and Sanna Hammoud.

The Davis Polk finance team included partner Vanessa L. Jackson and associates Phoebe Jin and Jenny Dai. The capital markets team included partner Joseph A. Hall and associate Moses Farzan Nekou.

The Simpson Thacher team included William Sheehan, Dean Masuda and Kyle Nelson (Banking and Credit); Michael Mann (Tax); and Pasco Struhs (ERISA).

Involved fees earner: Jenny Dai – Davis Polk & Wardwell; Moses Farzan Nekou – Davis Polk & Wardwell; Joseph Hall – Davis Polk & Wardwell; Vanessa Jackson – Davis Polk & Wardwell; Phoebe Jin – Davis Polk & Wardwell; Larissa Bifano – DLA Piper; Philipp Cepl – DLA Piper; Freddie De Boise – DLA Piper; Marco de Morpurgo – DLA Piper; Sean Faehrmann – DLA Piper; Isabella Gee – DLA Piper; Christopher Gismondi – DLA Piper; Tom Heylen – DLA Piper; Stasia Kelly – DLA Piper; Jonathan Klein – DLA Piper; Tracey Renshaw – DLA Piper; Sarah Riley – DLA Piper; Sanjay Shirodkar – DLA Piper; Kathleen Ruhland – DLA Piper; Jenna Stewart – DLA Piper; Kirsty Underhill – DLA Piper; Brian Wohlberg – DLA Piper; Jens Bengtsson – Roschier; Peder Boström – Roschier; Lovisa Eliasson – Roschier; Erik Ellenius – Roschier; Jacob Giesecke – Roschier; Sanna Hammoud – Roschier; Alexis Hekmatfar – Roschier; Kristian Hugmark – Roschier; Rebecca Huselius – Roschier; Björn Johansson Heigis – Roschier; Marcus Kern Fahlander – Roschier; Emil Larsson – Roschier; Malin Leffler – Roschier; Giada Maglione – Roschier; Ellen Pettersson – Roschier; Ola Sandersson – Roschier; William Silfversten – Roschier; Veronica Stiller – Roschier; Jenny Welander Wadström – Roschier; Michael Mann – Simpson Thacher & Bartlett; Dean Masuda – Simpson Thacher & Bartlett; Kyle Nelson – Simpson Thacher & Bartlett; William Sheehan – Simpson Thacher & Bartlett; Pasco Struhs – Simpson Thacher & Bartlett;

Law Firms: Davis Polk & Wardwell; DLA Piper; Roschier; Simpson Thacher & Bartlett;

Clients: Bank of America Europe Designated Activity Company; Citibank Europe ; Philip Morris International Inc.;

Author: Giulia Di Palma