Buy side Advisory for KT&G’s Acquisition of Another Snus Factory (ASF)

KT&G has been redefining its mid to long term growth strategy to overcome the limitations of a traditional combustible cigarette centered business model and to strengthen its competitiveness in the NGP (Next Generation Products) segment, including e cigarettes and nicotine pouches. As global health awareness rises, regulations tighten, and smoke free products expand, establishing a strategic foothold in the European NGP market has become a key priority for KT&G.

Against this backdrop, PwC—drawing on a deep understanding of KT&G’s business structure, product portfolio, and global strategy from the very early stages of the transaction—reviewed a range of NGP players across Europe and identified Another Snus Factory (ASF), a Swedish nicotine pouch company, as the most suitable acquisition target. ASF demonstrates strong competitiveness in mature NGP markets such as Sweden and Norway and was well aligned with KT&G’s global expansion strategy.

Following target identification, PwC provided comprehensive support across the entire transaction process, including acquisition strategy development, due diligence, structuring, negotiations, and closing. Even within a complex environment where multiple global tobacco companies were considered as potential co investors, PwC guided KT&G in securing both strategic flexibility and long term synergy through the optimal collaboration structure.

The transaction was executed through close collaboration between PwC Korea and PwC Sweden, enabling the team to promptly capture critical insights into the European NGP market structure, regulatory environment, and competitive landscape. In a competitive bidding process involving several global investors, PwC clearly articulated KT&G’s acquisition competitiveness and closely analyzed the seller’s expectations and rival bidders’ movements. This allowed KT&G to secure a strong strategic position and ultimately complete the acquisition of ASF under favorable terms.

This project is a representative example of PwC’s cross border execution capability, deep understanding of the NGP sector, and seamless cooperation within the global PwC network. The engagement was led by Partner Daeho Kang.