Lane Limited (Lane), a manufacturer and marketer of specialty tobacco products and an operating subsidiary of Reynolds American Inc. (NYSE: RAI), has closed the sale of the assets related to its Dr. Grabow line of pipes and pipe filters, and Dill’s pipe cleaners, to International Pipes & Accessories LLC. The buyer has agreed to pay $4.3 million for the business.
The sale includes the transfer of ownership of the Dr. Grabow manufacturing facility in Sparta, N.C., to the buyer, as well as a contract for services related to the distribution of Lane products for one year. After one year, distribution of Lane’s products will transfer out of the Sparta facility.
Dr. Grabow is the best-selling brand of pipes in the United States, with its production facility in Sparta producing approximately 250,000 pipes per year. Read the Carolina Newswire report here.