The Oettinger Davidoff Group Completes Strategic Acquisition Adding Another Cigar Producer in the USA by Purchasing Cusano Cigars

BRADENTON, Fla., June 23 /PRNewswire/ -- The Oettinger Davidoff Group, headquartered in Basel (Switzerland), has acquired from the Chiusano Family the Bradenton, FL based company Cusano Cigars, operated by DomRey Cigar, Inc. The acquisition of Cusano Cigars allows the Oettinger Davidoff Group to tap a new source of revenue in the USA, the largest market for premium cigars in the world, in which around half of all the world's hand-made cigars are sold.

Cusano Cigars is the second American company to join the Oettinger Davidoff Group within a matter of months, thereby further extending the group's presence in the USA. Cusano Cigars markets its Dominican Republic produced cigars with great success in the mid and upper price segments. In addition, the company has specialized in the multi-channel marketing of tobacco products, supported by a commensurate merchandising service, and also acts as exclusive importer and distributor for the Dutch Agio Cigars brands "Panter" and "Meharis". The portfolio is complemented by other brands, such as "Perfect Cut," developed especially for the tobacco outlet and convenience store channels. Specialized products are made in the company's own factory, DR Global S.A., in the Dominican Republic since the end of 2007.

The Oettinger Davidoff Group and the Chiusano Family have already maintained a business relationship for over a decade: Cusano Cigars entrusted the production of its longfiller cigars to Tabadom SA, a subsidiary of the Oettinger Davidoff Group in the Dominican Republic, in 1997.

"Through the incorporation of Cusano Cigars in the Oettinger Davidoff Group, we are gaining access to several new distribution channels in the USA, including the so-called c-stores through subsidiary CTS Concepts LLC and tobacco outlet chains through DomRey Cigar, Inc. And our management in the USA will be further strengthened by Michael J. Chiusano, a marketing and sales professional, a profound authority on the market and an innovative thinker," Dr. Reto Cina, Oettinger Davidoff Group CEO, is pleased to announce.

The now 48-year-old founder of Cusano Cigars came into the cigar business almost by chance. In 1995, as a passionate cigar smoker, working at that time in the financial sector, he took one hundred cigars that he had discovered on one of his journeys to the Dominican Republic, had them personalized with his own cigar band and sent them to selected customers as a gift. The response was so overwhelming that he soon placed a second order for 10,000. Without delay he registered "Cusano Hermanos", the Spanish version of his family name translated as "Cusano Brothers", and the foundation stone for Cusano Cigars was laid. Cusano Cigars has been active in the tobacco business since 1996. The Chiusano brothers Joseph and Michael have elected to remain with the company in their respective positions and are enthusiastic about the future.

Michael J. Chiusano remains President of Cusano Cigars. "Our family is honored to have been selected and welcomed into the Oettinger Davidoff Group. In the world of cigars, there is no higher compliment than to become part of the Davidoff family. Belonging now to the Oettinger Davidoff Group means our family name and dedication to our products will be shared and protected around the world. The global presence of the Davidoff group is unparalleled and we are proud to become members of such a respected team," says Michael J. Chiusano.

The Oettinger Davidoff Group is a globally operating family company established in Basel in 1875. With the acquisition of Zino Davidoff's Geneva tobacco shop in 1970, the company sought out to establish Davidoff as an international brand.

Today, the group is a leading fully integrated production, international marketing and contract service company for manufacturers of tobacco and confectionery products in the world. Its presence in 120 countries includes tobacco leaf operations, manufacturing facilities, distribution and logistics centers and over 200 company-owned sales outlets with 58 Davidoff Flagship Stores worldwide.

With its extensive, diverse global brand portfolio including Davidoff, Zino, Zino Platinum, AVO, Griffin's, Private Stock, Winston Churchill, the recently acquired Camacho and Cusano Cigar brands, the Oettinger Davidoff Group represents a dynamic, vertically integrated leader in all segments of the international tobacco trade.

The terms of the acquisition will remain confidential.

Facts & Figures Cusano Cigars

    Employees:            36
                       -- 20 in the Dominican Republic: office, cigar factory
                       -- 16 in the USA: office and sales
                       -- plus 10 additional contract sales representatives
                          in the USA
    Own brands:           Cusano, Cuvee, Celebrity Bundles, Dominican Sweets,
                          Perfect Cut
    Exclusive USA
    Importer/Distributor: Royal Agio Cigars brands "Panter" and "Meharis"
    Most sold cigar:      Cusano 18 (Robusto Format)

Facts & Figures Oettinger Davidoff Group 2008

    Turnover:           CHF 1.311 billion
    Employees:          3,688 worldwide
    Cigar production:   28,2 million
    Own brands:         Davidoff, Zino, Zino Platinum, AVO, Griffin's,
                        Private Stock, Camacho, Baccarat <The Game>, La
                        Fontana, Legend-Ario, National Brand, Repeater,
                        Deluxe, Don Macho, Don Felo, Nude Bundles as well
                        as smokers' accessories such as humidors, cigar
                        cutters, pipes, lighters etc.
    License product:    Winston Churchill
    Most sold cigar:    Davidoff 2000 (Corona Format)