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Reynolds Completes Lane Sale

Tobacco company says it has completed the sale of its Lane Ltd. subsidiary for $205 million in cash to Scandinavian Tobacco Group.

WINSTON-SALEM, N.C. (AP) -- Tobacco company Reynolds American Inc. says it has completed the sale of its Lane Ltd. subsidiary for $205 million in cash to Scandinavian Tobacco Group.

The Winston-Salem, N.C., company on Tuesday announced the completion of the sale to the Danish pipe tobacco company after receiving antitrust approval from the Federal Trade Commission.

Lane, based in Tucker, Ga., makes Kite and Bugler roll-your-own tobacco and Captain Black pipe tobacco.

When it announced plans for the sale in January, Reynolds American had said Lane contributes about 4 cents per share to its annual earnings. It said the sale would allow the company to devote its resources to its primary growth categories, cigarettes and smokeless tobacco.