Houchens Sells Tobacco Unit

BOWLING GREEN, Ky. -- Houchens Industries here has agreed to sell its Commonwealth Brands cigarette division to Britain‘s Imperial Tobacco for $1.9 billion. The deal requires government approval and the vote of Houchens employee-owners, Jimmie Gipson, chairman, president and chief executive officer, Houchens, told SN on Friday. Houchens is owned by its workers through an employee stock ownership plan. The diversified company, best known for operating supermarkets and convenience stores, purchased Commonwealth in 2001. The Commonwealth division, which manufactures discount cigarette brands, had sales of $348 million in fiscal 2006. Gipson declined comment on Houchens‘ specific plans for the proceeds of the sale, but said “as an ESOP company, the shareholder is likely to benefit the most.” -- Jon Springer