Batus Inc.

Last updated
British American Tobacco US, Inc. (BATUS, Inc.)
Type Subsidiary
Industry Tobacco
Retail
Insurance
Defunct2004;19 years ago (2004) [1]
FateMerged with the other BAT's U.S. business (Brown & Williamson and R.J. Reynolds to form Reynolds American) [1]
Successor Reynolds American [1]
Headquarters
Kentucky [2]
,
United States
Area served
United States
Key people
David Schechter (Director) [2]
Products Cigarettes
Parent British American Tobacco
Subsidiaries Appleton Paper Co.
Farmers Insurance Group

British American Tobacco US, mostly known for its acronym BATUS, was the US subsidiary of multinational company British American Tobacco (BAT), the world's second largest cigarette manufacturer. BATUS served as the U.S. holding company for BAT. [3] In the 1960s, the company diversified into areas such as insurance, drink, and retail.

Contents

In 2004, BATUS merged with the other BAT's U.S. business, Brown & Williamson and R.J. Reynolds, to form Reynolds American. [1]

History

BATUS was created by British American Tobacco as a subsidiary to oversee the US holdings in 1980. [4] [5] [6] Through its BATUS unit, BAT diversified its tobacco holdings with acquisitions in the retail sector, [7] paper sector (through the acquisition of Appleton Paper Company [3] ) and insurance (through the acquisition of Farmers Insurance Group). [8] [9]

Management for BATUS was initially derived from Brown & Williamson Tobacco with B&W's CEO and chairman of the board, Joseph E. Edens, becoming the first president of BATUS in 1980. [6] [10] Edens retired as president in 1981 and was replaced by Charlie McCarty. [6] [11] In 1985, Hank Frigon was elected chief operating officer of the company and it was announced that he would succeed McCarty after he retired. [11]

In 1972, BATUS acquired Kohl Food and Department Stores from the Kohl family. [12] In 1973, the company acquired Saks Fifth Avenue and Gimbel Brothers. [13] In 1982, BATUS acquired Marshall Field & Co and Frederick & Nelson for $310 million. [3] [14] [15]

In 1986, BATUS sold Gimbels to various companies including May Department Stores and Allied Stores. [16] Also in 1986, four investors acquired Kohl's in a leveraged buyout. [12]

To manage the large retail holdings, BAT and BATUS created BATUS Retail Group in the 1980s. The group expanded the current store presence of existing businesses and developed Thimbles, a women's clothing company. [17]

In 1988, BATUS acquired Farmers Group Inc. [18] In 1989, Sir James Goldsmith attempted a hostile takeover of BAT. [19] In an effort to fend off the takeover, BAT divested much of its US operations to raise capital and focus the business. [20] BRG and BATUS was shut down and some remaining administrative operations were consolidated back to Brown and Williamson Tobacco.[ citation needed ]

While the company was not required to file an annual report since they were a subsidiary of British American Tobacco based in London, they did produce reports to assist with financing and investments in the United States. One of BATUS' primary responsibilities was the management of funding and cash from US operations. [21]

Department stores owned by BATUS

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References

  1. 1 2 3 4 Reynolds American Inc., SECURITIES AND EXCHANGE COMMISSION report, Juny 30, 2004
  2. 1 2 Batus, Inc. profile on Open Corporates.com
  3. 1 2 3 Knight, Jerry (17 March 1982). "Batus Inc. To Acquire Field Stores". Washington Post.
  4. ↑ Gellene, Denise (1988-01-14). "British Firm Bids $4 Billion to Acquire Farmers Group". Los Angeles Times. Retrieved 2020-10-21.
  5. 1 2 Clary, Isabelle (25 April 1990). "B.A.T Industries sells Saks Fifth Avenue for $1.5 billion". UPI. Retrieved 2020-10-21.
  6. 1 2 3 "Joseph Edens, retired tobacco executive dies". The Paducah Sun. 7 December 1987. Retrieved 2020-10-21– via Newspapers.com.
  7. ↑ Barmash, Isadore (3 March 1983). "BATUS INC.'S RETAIL CHIEF RESIGNING (Published 1983)". The New York Times. ISSN   0362-4331.
  8. ↑ Batus Inc.: The Louisville, Ky., holding company... on Los Angeles Times, 9 May 1989
  9. ↑ BATUS INC'S HEARINGS UNDER WAY IN ILLINOIS on Journal of Commerce, Jun 7, 1988
  10. ↑ Cray, Douglas W. (1974-12-07). "People and Business Banker Sees Hope Amid Gloom (Published 1974)". The New York Times. ISSN   0362-4331 . Retrieved 2020-10-21.
  11. 1 2 Gilpin, Kenneth N. (1985-01-03). "BUSINESS PEOPLE; Batus Head to Succeed Retiring Chief Officer (Published 1985)". The New York Times. ISSN   0362-4331 . Retrieved 2020-10-21.
  12. 1 2 "BUSINESS PEOPLE; Kohl's 'Driving Force' On the Road to Buyout (Published 1986)". The New York Times. 1986-05-26. ISSN   0362-4331 . Retrieved 2020-10-21.
  13. ↑ Clifford, Stephanie; Lattman, Peter (29 July 2013). "Hunting for Luxury, Retail Giant Buys Saks". The New York Times. Retrieved 2020-10-21.
  14. ↑ Marshall Field & Co. and BATUS Inc., a subsidiary... on UPI archived, 16 Mar 1982
  15. ↑ Flores, Michele (16 January 1994). "Downtown Dealmaker -- Frederick & Nelson Heir Holds The Key To Revitalizing Seattle's Retail Core | The Seattle Times". The Seattle Times. Retrieved 2020-10-21.
  16. ↑ Groves, Martha (1986-09-11). "Batus to Sell Last of Famed Gimbels Stores". Los Angeles Times. Retrieved 2020-10-21.
  17. ↑ Barmash, Isadore (1987-05-05). "COMPANY NEWS; Saks, Field's Report 1986 Income Gains (Published 1987)". The New York Times. ISSN   0362-4331 . Retrieved 2020-10-21.
  18. ↑ Adelson, Andrea (1988-08-25). "B.A.T. Bid Is Accepted By Farmers (Published 1988)". The New York Times. ISSN   0362-4331 . Retrieved 2020-10-21.
  19. ↑ "COMPANY NEWS; Goldsmith Says Bid For B.A.T. in Snag (Published 1989)". The New York Times. 1989-09-01. ISSN   0362-4331 . Retrieved 2020-10-21.
  20. ↑ Keppel, Bruce (1989-09-27). "BAT Industries to Sell Assets in Bid to Stymie Goldsmith". Los Angeles Times. Retrieved 2020-10-21.
  21. ↑ "Industry Documents Library".
  22. ↑ History on Kohl's company website
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