May 12—Swedish Match's board of directors Wednesday recommended that the company's shareholders accept the offer of Philip Morris International to buy more than 90% of its shares in a deal reportedly worth $16 billion.

The announcement said that the period for stockholders to accept or reject the offer is expected to begin around June 23 and end on or around Sept. 30, "subject to any extensions."

Swedish Match has a major presence in Owensboro.

Its plant at 1121 Industrial Drive has 746,641 square feet under roof on its 44.5-acre site.

The property is assessed at $12.39 million.

The company has 637 employees here.

In a statement released Wednesday, Philip Morris indicated that employees will be safe if and when the purchase is completed.

The statement said "PMI recognizes that the employees and management team of Swedish Match have built a highly successful business with an excellent track record, and PMI has the utmost respect for them. PMI's current plans for the future business and general strategy do not include any material changes with regard to Swedish Match's operational sites, or its management and employees, including their terms of employment."

It added that "Swedish Match has a complementary organization with a talented, dedicated workforce, excellent culture and a strong base of skills in Sweden, the U.S. and across the world. PMI would intend to nurture this talent and provide additional opportunities as the companies grow together.

"Importantly, PMI intends to provide compensation and benefits consistent with Swedish Match's current programs, including the Profit Sharing Foundation in Sweden."

Swedish Match's Owensboro-made ZYN nicotine pouches are the No. 1 nicotine pouch in the United States, with 173.9 million cans sold in more than 120,000 stores last year.

Worldwide sales were 198 million cans in 20 countries.

Wednesday, the company reported that ZYN sales were up 16% in the first quarter of this year compared with 2021.

Reuters news service said Tuesday that Swedish Match's Smokefree division accounted for $1.2 billion in sales last year.

The smokeless tobacco market is growing, and that's said to be the reason Philip Morris wants Swedish Match.

Financial Times reported that PMI has said it will pay $10.57 per share for Swedish Match's stock — a premium of 39% above the closing price on May 9, before talks between the companies became public. The stock closed Wednesday at $10.19.

If PMI completes the purchase, it would mean that two of the world's largest tobacco companies would have a presence in Owensboro.

Kentucky Bioprocessing, which uses a "a proprietary plant-expression system for producing vaccines and antibody therapeutics," is owned by British American Tobacco, the world's largest tobacco company.

But its origins are with Swedish Match.

In 1991, Swedish Match opened a research facility, Reserca R & D Station, on Ewing Road.

Four years later, it sold the facility to Biosource Technologies Inc. of Vacaville, California.

The company then became Large Scale Biology.

But it ran into financial problems, and the company was sold to Owensboro Health in 2006 and renamed Kentucky BioProcessing.

In 2014, Owensboro Health sold the company to Reynolds American.

Three years later, British American Tobacco bought Reynolds.

And Kentucky BioProcessing is now KBio Inc.

270-691-7301 klawrence@messenger-inquirer.com