Tobacco giants JTI and Imperial Tobacco have agreed a deal with Palmer & Harvey (P&H) which could see them invest tens of millions of pounds into the business in return for a stake of P&H.
The deal, which has been agreed for an undisclosed sum, is to secure new debt facilities with a group of banks, and is backed by the tobacco giants.
Initially it had been reported the tobacco manufacturers were considering buying shares in the delivered wholesaler, however, they will instead support P&H’s borrowings through guarantees.
Tony Reed, chief executive of P&H, said: “The refinancing provides us with a strong financial position from which to drive forward P&H and to take advantage of the many opportunities we see in the wholesale and convenience markets.”
