Swedish Match has signed an agreement with Plasencia Group, one of the world's largest producers of premium cigar tobacco, to form a new tobacco growing and procurement operation named Caribbean Cigar Holdings.

Consortium’s offices in Honduras and Nicaragua advised Swedish Match in the acquisition of 20 percent interest in the venture.

Lennart Freeman, president of Swedish Match International, said the deal is mainly aimed at increasing Swedish Match's access to and expertise in leaf tobacco, especially fine leaf used in the company's premium cigars.

"It continues our strategy to be the best in the categories that Swedish Match International is in, including cigars," he said.

Swedish Match has bought tobacco from Plasencia for years, and the company will continue to supply other cigar producers, Freeman said.

Swedish Match International manufactures and markets both premium and mass-market cigars primarily for the U.S. market and machine-made cigars for the European and the International market. Its cigar brands include Macanudo, Partagas and Cohiba.

The company also sells pipe tobacco, matches and lighters in Europe, Latin America, Australia and Asia.

Plasencia Group, a family-owned company founded by Nestor Plasencia, grows tobacco, processes it and owns premium cigar plants in Honduras and Nicaragua.

Consortium conducted a Due Diligence that took 6 months which involved the reorganization of the group and of certain assets.

The team of lawyers that advised Swedish Match was led by our partner, Rodrigo Taboada in Consortium-Nicaragua; the team was also formed by associates, Alfonso Sandino and Carlos Castrillo; and in Consortium-Honduras: partner, Jose Rafael Rivera and associate, Jose Miguel Alvarez.