Date: May 2024
Author: Inspector X

On Thursday morning, Robert Holt announced via Instagram that he and his wife, Sharon, are contemplating selling their stake in Southern Draw Cigars. This potential sale stems from a mix of personal reasons and industry dynamics prompting them to consider the company’s future.

Holt emphasized that the post was “not an alarm” but rather a reflection of current circumstances influencing their decision. He explained that the combination of serious health concerns and the anticipated costs associated with these issues at home has made the idea of selling their stake more appealing. By doing so, they hope to alleviate some of these financial burdens.

Additionally, Holt acknowledged the evolving landscape of the cigar industry. “The industry consolidates more and more each year, brands align, staff(s) are fortified, and we would be lying to ourselves and others if we didn’t acknowledge that we too need help and need to add key personnel,” he noted. The increasing consolidation within the industry has highlighted the need for Southern Draw Cigars to bolster its team and resources to remain competitive.

Despite considering a sale, Holt expressed a desire to retain a minority stake in the company and continue his involvement in blending, producing, and branding. However, he stated that these conditions are not mandatory for the sale. Holt is also open to the idea of a merger that would provide joint sales, distribution, and support, potentially offering a collaborative path forward for Southern Draw Cigars. The deal Holt is looking for is similar to the deal Matt Booth from Room101 made with STG.

This announcement marks a significant moment for Southern Draw Cigars as it explores new possibilities for its next chapter. The Holts’ openness to various outcomes—whether it be a partial sale, full sale, or merger—reflects their commitment to the company’s legacy and future success.

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