On Oct. 27, 2003, R.J. Reynolds Tobacco Holdings, Inc. (NYSE: RJR) and British American Tobacco p.l.c. (AMEX: BTI) signed an agreement to combine the assets and operations of their respective U.S. tobacco businesses: R.J. Reynolds Tobacco Company (RJRT) and Brown & Williamson Tobacco Corp. (B&W).
The agreement provided for the establishment of a new publicly traded holding company, Reynolds American Inc., with approximately 150 million shares outstanding. At closing, on July 30, 2004, BAT owned 42 percent of those shares through its Brown & Williamson subsidiary, and the remaining 58 percent was owned by former RJR shareholders, who received RAI stock in a one-for-one exchange for their RJR stock.
Reynolds American Inc. first began trading on the New York Stock Exchange on Aug. 2, 2004 as the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc. and Lane Limited. Lane was acquired from BAT as part of the transaction that established Reynolds American Inc., and RAI sold the company in March 2011 to Scandinavian Tobacco Group A/S.
R.J. Reynolds Tobacco Company, the second-largest U.S. cigarette manufacturer, manufactures some of the nation's best-selling cigarette brands: Camel, Pall Mall, Winston, Salem and Doral.
Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit additive-free and organic cigarettes.
RAI acquired Conwood, the second-largest U.S. smokeless tobacco company, in May 2006 Conwood’s name was changed Jan. 1, 2010 to American Snuff Company, LLC. RAI also acquired Niconovum AB, a Swedish-based nicotine replace therapy company, in December 2009.