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WINSTON-SALEM, N.C. — Reynolds American Inc. is looking toward its future with British American Tobacco plc (BAT).
Anticipating a third-quarter close of BAT's $49-billion acquisition of the company, RAI unveiled its proposed leadership team, with Debra A. Crew remaining as president and CEO of RAI. Upon the successful close of the deal, she will report to Nicandro Durante, president and CEO of BAT.
However, Andrew D. Gilchrist, currently executive vice president and chief financial officer of RAI, has indicated that, in the event of the completion of the proposed acquisition, he intends to resign from the company shortly after the completion of the acquisition.
Gilchrist's replacement will be named in the future, and will report to Crew, according to RAI.
According to RAI, the majority of senior executives will remain with the RAI companies. The executives who plan to remain, and their titles at RAI or one of its subsidiaries, are:
- Michael P. Auger, president of RAI Trade Marketing Services Co.
- Lisa J. Caldwell, executive vice president and chief human resources officer of RAI, RAI Services Co. (RAIS) and R.J. Reynolds Tobacco Co. (RJRT)
- Joseph P. Fragnito, president and chief commercial officer for RJRT
- Carolyn C. Hanigan, president of RAI Innovations Co.
- Nancy H. Hawley, executive vice president of operations for RJRT
- Daniel J. Herko, executive vice president of research and development of RJRT and executive vice president of scientific and regulatory affairs for RAIS
- Martin (Mark) L. Holton III, executive vice president of legal and external affairs and general counsel for RAI and RAIS
- N. Winton Jennette, senior vice president of strategy and planning for RJRT
- Kevan A. Ostrander, vice president of information management for RAIS
- Mark A. Peters, senior vice president of decision support and transition planning of RAIS and chief financial officer for RJRT
"I'm delighted that so many of our companies' strong, seasoned leaders will remain in their roles following completion of the proposed acquisition," Crew said. "As a group, we are committed to our shared vision of transforming the U.S. tobacco industry, and we are confident that being part of a much larger, global organization will enable us to achieve this vision and amplify our success."
In addition to Gilchrist, Cressida Lozano, the current executive vice president of consumer marketing for RJRT, has indicated that, in the event of the completion of the proposed acquisition, she intends to resign from the company later this year.
J. Brice O'Brien, the current executive vice president of public affairs and chief communications officer, has also indicated that he intends to resign from the company after the proposed acquisition becomes official.
Mark Holton will assume O'Brien's responsibilities following his departure. Holton will also continue his role as RAI's general counsel.
"Our companies owe Andrew Gilchrist, Brice O'Brien and Cressida Lozano tremendous thanks for their leadership and commitment to our shared success," Crew said. "Should these resignations occur, we wish them all the best in their future endeavors."
RAI's acquisition by BAT is subject to approval by both companies' shareholders as well as other customary closing conditions. RAI continues to expect the transaction to be completed in the third quarter of 2017.
RAI, based in Winston-Salem, is the parent company of R.J. Reynolds Tobacco Co.; Santa Fe Natural Tobacco Co. Inc.; American Snuff Co. LLC; Niconovum USA Inc.; Niconovum AB; and R.J. Reynolds Vapor Co.