TUCKER, GA & SPARTA, NC -- Lane Limited (Lane), a manufacturer and marketer of specialty tobacco products and an operating subsidiary of Reynolds American Inc. (NYSE: RAI), has closed the sale of the assets related to its Dr. Grabow line of pipes and pipe filters, and Dill's pipe cleaners, to International Pipes & Accessories LLC. The buyer has agreed to pay $4.3 million for the business.
The sale includes the transfer of ownership of the Dr. Grabow manufacturing facility in Sparta, N.C., to the buyer, as well as a contract for services related to the distribution of Lane products for one year. After one year, distribution of Lane's products will transfer out of the Sparta facility.
Dr. Grabow is the best-selling brand of pipes in the United States, with its production facility in Sparta producing approximately 250,000 pipes per year.
"The closing of this sale allows Lane to more fully focus on its core business and growth strategy," said Nick Bumbacco, president and CEO of Lane. "Selling the Dr. Grabow business at this time is the best fit for Lane and for Dr. Grabow. International Pipes & Accessories LLC has a long-term interest in investing in and growing the Dr. Grabow business, while Lane will continue to focus on manufacturing and marketing premium tobacco products."
Lane currently employs 62 people at the Sparta facility. Effective immediately, 61 employees at the facility will become employees of International Pipes & Accessories LLC. One employee will remain with Lane.
About Lane Limited
Lane Limited (Lane) is the manufacturer and/or marketer of a wide range of specialty tobacco products including roll-your-own and pipe tobaccos, Dunhill and Express 555 premium international cigarettes, little cigars and premium Dunhill cigars. Based in Tucker, GA., Lane is a subsidiary of Reynolds American Inc. http://www.reynoldsamerican.com.
