Batus Inc.

British American Tobacco US, Inc.

File:Bat logo20.svg
Company type	Subsidiary
Industry	Tobacco Retail Insurance
Founded	1980 (1980)
Defunct	Template:End date and age
Fate	Consolidated with BAT's other U.S. operations (Brown & Williamson and R.J. Reynolds) to establish Reynolds American
Successor	Reynolds American
Headquarters	Kentucky , United States
Area served	United States
Key people	David Schechter (Director)
Products	Cigarettes
Parent	British American Tobacco
Subsidiaries	Appleton Paper Co. Farmers Insurance Group

British American Tobacco US (known as BATUS) functioned as the American subsidiary of the global corporation British American Tobacco (BAT), the world's second-largest producer of cigarettes. BATUS operated as BAT’s holding entity within the United States. During the 1960s, the company expanded its interests beyond tobacco into sectors including insurance, beverages, and retail.

In 2004, BATUS combined forces with BAT's other U.S.-based businesses, namely Brown & Williamson and R.J. Reynolds, resulting in the formation of Reynolds American.

History

Established in 1980 by British American Tobacco, BATUS was designed to manage BAT's U.S. assets. Through BATUS, BAT broadened its tobacco portfolio by acquiring assets in the retail industry, paper manufacturing via Appleton Paper Company and insurance through its purchase of Farmers Insurance Group.

Initially, leadership for BATUS was drawn from the management team at Brown & Williamson, with Joseph E. Edens—then CEO and chairman of Brown & Williamson Tobacco—appointed as BATUS's first president in 1980. Edens stepped down from the presidency in 1981 and was succeeded by Charlie McCarty. In 1985, Hank Frigon was appointed chief operating officer and was designated to take over from McCarty upon his retirement.

In 1972, BATUS acquired Kohl Food and Department Stores from the Kohl family. The following year, it expanded further by purchasing both Saks Fifth Avenue and Gimbel Brothers.

In a significant acquisition during 1982, BATUS purchased Marshall Field & Co and Frederick & Nelson for $310 million.

By 1986, BATUS divested Gimbels to several firms including May Department Stores and Allied Stores. That same year saw Kohl's purchased through a leveraged buyout by four investors.

To effectively administer its extensive retail portfolio, BAT and BATUS established the BATUS Retail Group during the 1980s. This division focused on expanding store networks for existing brands and launched Thimbles, a women's apparel retailer.

In 1988, Farmers Group Inc became part of BATUS through acquisition. The following year witnessed an attempted hostile takeover of BAT by Sir James Goldsmith. To counter this bid, BAT sold off substantial portions of its U.S. operations to generate capital and streamline its focus. Consequently, BRG and BATUS were dissolved with some administrative functions reverting to Brown and Williamson Tobacco.Template:Fix/category

Although not obligated to submit annual reports due to its status as a subsidiary of London-based British American Tobacco, BATUS prepared financial statements to support funding activities within the United States. A key function of the company involved overseeing cash flow management from U.S. operations.

Department stores under BATUS ownership

• The Crescent located in Spokane, Washington (converted to Frederick & Nelson in 1988) In 1982, BATUS acquired Marshall Field's, which owned The Crescent. Both The Crescent and Frederick & Nelson were sold by BATUS in 1986.
• Frederick & Nelson based in Seattle, Washington (closed in 1992; flagship store became a Nordstrom in 1998) BATUS took over Marshall Field's, the parent company of Frederick & Nelson, in 1982. The division was divested alongside The Crescent in 1986.
• Gimbels with locations in New York City, Philadelphia, Pittsburgh, and Milwaukee (currently part of Macy's) Brown and Williamson acquired Gimbels in 1973. The division was shuttered by BATUS in 1986, with some outlets absorbed by the related Marshall Field's division, which transitioned to Macy's branding by 2006.
• J.B. Ivey operating in Charlotte, North Carolina, and Jacksonville, Florida (now under Dillard's) Ownership transferred to BATUS through the acquisition of Marshall Field's in 1982. Ivey's was sold to Dillard's in 1990.
• Kohl's based in Wisconsin (currently active) Kohl's was acquired by BATUS in 1972. The grocery segment of Kohl's was sold to A&P in 1983. Subsequently, BATUS divested the department store portion of Kohl's in 1986.
• Marshall Field's headquartered in Chicago, Illinois (rebranded as Macy's) BATUS purchased Marshall Field's in 1982 and later sold it to Dayton Hudson Corporation (now known as Target Corporation) in 1990. May Department Stores acquired Marshall Field's in 2004, and then May was taken over by Federated Department Stores in 2005, which rebranded all locations as Macy's by 2006.
• Saks Fifth Avenue located in New York City, New York (currently operational) Brown and Williamson obtained Saks Fifth Avenue during its acquisition of Gimbels in 1973. In 1990, BATUS sold Saks to Investcorp S.A., which subsequently transferred ownership to Proffitt's, Inc.. This company later rebranded as Saks Incorporated. In 2013, Saks was acquired by Hudson Bay Company.