British American Tobacco US (BATUS) was the American 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.
 | |
| Type | Subsidiary |
|---|---|
| Industry | Tobacco Retail Insurance |
| Founded | 1980 |
| Defunct | 2004[1] |
| Fate | Merged with the other BAT's U.S. business (Brown & Williamson and R.J. Reynolds to form Reynolds American)[1] |
| Successor | Reynolds American[1] |
| Headquarters | , 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 |
In 2004, BATUS merged with the other BAT's U.S. business, Brown & Williamson and R.J. Reynolds, to form Reynolds American.[1]
History
editBATUS was created by British American Tobacco as a subsidiary to oversee the U.S. 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 U.S. 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
edit- The Crescent of Spokane, Washington (became Frederick & Nelson 1988) In 1982, BATUS purchased Marshall Field's, owners of The Crescent. BATUS sold The Crescent with Frederick & Nelson in 1986.
- Frederick & Nelson of Seattle, Washington (closed 1992, flagship became a Nordstrom in 1998) In 1982, BATUS purchased Marshall Field's, owners of Frederick & Nelson. BATUS sold Frederick & Nelson with The Crescent in 1986.
- Gimbels of New York City, Philadelphia, Pittsburgh and Milwaukee (now Macy's) Brown and Williamson purchased Gimbels in 1973. BATUS closed the division in 1986. Some stores were taken over by sister division Marshall Field's, which became Macy's in 2006.
- J.B. Ivey of Charlotte, North Carolina, and Jacksonville, Florida (now Dillard's) In 1982, BATUS purchased Marshall Field's, owners of Ivey's. BATUS sold Ivey's in 1990 to Dillard's.
- Kohl's of Wisconsin (still operating) In 1972, BATUS purchased Kohl's. The Kohl's grocery stores were sold to A&P in 1983. BATUS sold Kohl's department stores in 1986.[22]
- Marshall Field's of Chicago, Illinois (now Macy's) In 1982, BATUS purchased Marshall Field's. BATUS sold Marshall Field's to Dayton Hudson Corporation (now Target Corporation) in 1990. Marshall Field's was then purchased by May Department Stores in 2004. May Department Stores was purchased in 2005 by Federated Department Stores, which renamed all of the stores Macy's in 2006.
- Saks Fifth Avenue of New York City, New York (still operating) Brown and Williamson acquired Saks Fifth Avenue in 1973 with its acquisition of Gimbels. In 1990, BATUS sold Saks to Investcorp S.A.,[5] which later sold Saks to Proffitt's, Inc.; that firm in turn changed its name to Saks Incorporated. Purchased by Hudson Bay Company in 2013.
References
edit- 1 2 3 4 Reynolds American Inc., SECURITIES AND EXCHANGE COMMISSION report, Juny 30, 2004
- 1 2 Batus, Inc. profile on Open Corporates.com
- 1 2 3 Knight, Jerry (March 17, 1982). "Batus Inc. To Acquire Field Stores". Washington Post.
- ↑ Gellene, Denise (January 14, 1988). "British Firm Bids $4 Billion to Acquire Farmers Group". Los Angeles Times. Retrieved October 21, 2020.
- 1 2 Clary, Isabelle (April 25, 1990). "B.A.T Industries sells Saks Fifth Avenue for $1.5 billion". UPI. Retrieved October 21, 2020.
- 1 2 3 "Joseph Edens, retired tobacco executive dies". The Paducah Sun. December 7, 1987. Retrieved October 21, 2020 – via Newspapers.com.
- ↑ Barmash, Isadore (March 3, 1983). "BATUS INC.'S RETAIL CHIEF RESIGNING (Published 1983)". The New York Times. ISSN 0362-4331.
- ↑ Batus Inc.: The Louisville, Ky., holding company... on Los Angeles Times, 9 May 1989
- ↑ BATUS INC'S HEARINGS UNDER WAY IN ILLINOIS on Journal of Commerce, Jun 7, 1988
- ↑ Cray, Douglas W. (December 7, 1974). "People and Business Banker Sees Hope Amid Gloom (Published 1974)". The New York Times. ISSN 0362-4331. Retrieved October 21, 2020.
- 1 2 Gilpin, Kenneth N. (January 3, 1985). "BUSINESS PEOPLE; Batus Head to Succeed Retiring Chief Officer (Published 1985)". The New York Times. ISSN 0362-4331. Retrieved October 21, 2020.
- 1 2 "BUSINESS PEOPLE; Kohl's 'Driving Force' On the Road to Buyout (Published 1986)". The New York Times. May 26, 1986. ISSN 0362-4331. Retrieved October 21, 2020.
- ↑ Clifford, Stephanie; Lattman, Peter (July 29, 2013). "Hunting for Luxury, Retail Giant Buys Saks". The New York Times. Retrieved October 21, 2020.
- ↑ Marshall Field & Co. and BATUS Inc., a subsidiary... on UPI archived, 16 Mar 1982
- ↑ Flores, Michele (January 16, 1994). "Downtown Dealmaker -- Frederick & Nelson Heir Holds The Key To Revitalizing Seattle's Retail Core | The Seattle Times". The Seattle Times. Retrieved October 21, 2020.
- ↑ Groves, Martha (September 11, 1986). "Batus to Sell Last of Famed Gimbels Stores". Los Angeles Times. Retrieved October 21, 2020.
- ↑ Barmash, Isadore (May 5, 1987). "COMPANY NEWS; Saks, Field's Report 1986 Income Gains (Published 1987)". The New York Times. ISSN 0362-4331. Retrieved October 21, 2020.
- ↑ Adelson, Andrea (August 25, 1988). "B.A.T. Bid Is Accepted By Farmers (Published 1988)". The New York Times. ISSN 0362-4331. Retrieved October 21, 2020.
- ↑ "COMPANY NEWS; Goldsmith Says Bid For B.A.T. in Snag (Published 1989)". The New York Times. September 1, 1989. ISSN 0362-4331. Retrieved October 21, 2020.
- ↑ Keppel, Bruce (September 27, 1989). "BAT Industries to Sell Assets in Bid to Stymie Goldsmith". Los Angeles Times. Retrieved October 21, 2020.
- ↑ "Industry Documents Library".
- ↑ History on Kohl's company website