Reynolds American Inc. to sell international rights to Natural American Spirit

Reynolds American Inc. (RAI) is selling the international rights to Natural American Spirit, and the international companies that sell its products beyond the U.S., to the Japan Tobacco Group. (JT Group.)

The all cash deal is valued at roughly $5 billion, according to the company which announced the sale on Tuesday..

RAI's president and CEO Susan Cameron, said it made sense to do the deal with a company that had an international infrastructure already in place rather than building such a global marketing framework on its own.

“Natural American Spirit has achieved excellent international growth over the past several years,” Cameron said in a statement. “When backed by the strength of the JT Group’s international distribution, sales force and manufacturing capabilities, we believe that growth trajectory will not only continue, but accelerate.”

The international companies being purchased by the JT Group sell and market Natural American Spirit cigarettes and tobacco mainly in Asia and Europe, with Germany, Switzerland and Japan their biggest markets.

Santa Fe Natural Tobacco Company Inc, a Reynolds subsidiary, will hold onto the rights to the Natural American Spirit name in the U.S.