Bulgartabac Holding Group – business restructuring and optimization (2004)

Bulgartabac Holding Group (BTH) is one of the leading tobacco companies in Central and Eastern Europe. The structure of the Holding includes tobacco buying, processing and leaf trade, manufacturing and export of cigarettes, research and development.

The 2004 restructuring process of the BTH group, consisting of 22 subsidiaries (9 cigarette plants, 12 tobacco processors and Yuri Gagarin printing company), included drafting of Restructuring and Optimization Strategy; regulatory framework analysis and drafting of changes to it; complex communication orchestration among interested parties; due diligence; marketing and communication to potential buyers; valuations; organization of tenders/auctions.

Bulbrokers Consulting acted as subcontractor to Morgan Stanley in the latest restructuring effort of BTH.

The sale of the largest cigarette companies to strategic investors was supposed to be the milestone of the restructuring so that to prepare the politically and socially sensitive tobacco industry for the EU-accession and the elimination of trade protection and state subsidies.

The process resulted in 2 minor tobacco processors being sold – Topolovgrad BT (EUR 307k) and Parvomay BT (EUR 199k).