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$RAI 1Q15 10-Q: During 1Q15, RJR Tobacco, together with Philip Morris USA Inc. and Lorillard, tentatively settled virtually all of the Engle Progeny cases then pending against them in federal district court. Total amount of the settlement was $100MM divided as follows: RJR Tobacco - $42.5MM; Philip Morris USA Inc. - $42.5MM; and Lorillard - $15MM.
In the event of the acquisition of $RAI by British American Tobacco plc, the majority of $RAI and its subsidiaries’ senior executives will remain with the $RAI companies but Andrew D. Gilchrist, EVP & CFO of $RAI, Cressida Lozano, EVP, Consumer Marketing, RJRT and J. Brice O’Brien, EVP of Public Affairs & Chief Communications Officer will resign.
The proposed acquisition of $RAI by British American Tobacco plc (BAT) is subject to shareholder approvals at both companies and is expected to close in 3Q17. Debra A. Crew will remain as President and CEO of $RAI. Should the acquisition be successfully completed, she will report to Nicandro Durante, President and CEO of BAT.
$RAI said its R.J. Reynolds Tobacco Co. (RJRT) subsidiary has submitted Modified Risk Tobacco Product (MRTP) applications to the U.S. Food and Drug Administration (FDA) covering six styles of Camel Snus, its premium pouched, smokeless tobacco product introduced in 2006 and marketed nationwide.
$RAI and British American Tobacco p.l.c. (BAT) said the U.S. Antitrust waiting period relating to BAT's proposed acquisition of $RAI has expired. The expiration of the waiting period satisfies the transaction closing condition related to U.S. antitrust approval. Both companies still expect deal to close in 3Q17.
$RAI said Thomas C. Wajnert will retire as a member of the board and as non-executive chairman, effective Dec. 31, 2016. Susan M. Cameron, currently President & CEO, will become executive chairman on Jan. 1, 2017. Lionel L. Nowell, III has been elected lead director, effective Jan. 1, when Ms. Cameron assumes the role of executive chairman.
$RAI said its new wholly-owned subsidiary, RAI Trade Marketing Services Co. (RAI TMS), will begin operations effective Jan. 1, 2017. RAI TMS will facilitate sales, distribution and retail/wholesale strategy execution for R.J. Reynolds Tobacco Co., American Snuff Co., Santa FE Natural Tobacco Co., and R.J. Reynolds Vapor Co. brands.
$RAI named Debra Crew, the current President and COO of $RAI's subsidiary R.J. Reynolds Tobacco Company, as President and CEO-elect of $RAI. She will succeed Susan Cameron as President and CEO of the company from Jan. 1, 2017. Joseph Fragnito has been appointed as R.J. Reynolds Tobacco Company's President and COO with effect from Oct. 24, 2016.