Pyxus International
| Company type | Public |
|---|---|
| Template:OTC Pink | |
| Industry | Tobacco wholesale and distribution; cannabis and hemp production |
| Genre | Consumer goods |
| Founded | 2005 |
| Headquarters | Morrisville, North Carolina, US |
| Revenue | $1.6 billion (2022) |
Number of employees | 3,330Template:Fix/category[citation needed] |
| Website | www |
Pyxus International, Inc. operates as a publicly listed global company focused on the storage, marketing, and distribution of leaf tobacco as an independent merchant. Its principal income is generated from the sale of leaf tobacco and fees for processing services provided to tobacco manufacturers worldwide. In 2014, the enterprise value of the firm was estimated at $1.27 billion. Pyxus manages more than 50 production sites internationally, supplying tobacco producers across regions including the United Kingdom, Japan, China, the United States, Southeast Asia, among others. The company has also broadened its operations into the cannabis and hemp sectors through targeted acquisitions.
History
The entity known as Alliance One International came into existence in 2005 following the merger between Dimon Incorporated and Standard Commercial Corporation. In 2018, the company adopted the name Pyxus International.
Dimon, which was established in 1995, made a significant move by acquiring Intabex Holdings Worldwide in 1997—then recognized as the fourth-largest leaf tobacco merchant globally—marking a pivotal moment in the leaf tobacco industry.
Standard Commercial Corporation dates back to 1910 and primarily served markets around the Mediterranean; before merging with Dimon, it held the position of the third-largest leaf merchant.
On June 15, 2020, Pyxus International initiated Chapter 11 bankruptcy proceedings but successfully completed its restructuring process by August 24, 2020, setting the stage for renewed operational growth and enhanced financial health.
Operations
In December 2013, the company discontinued its offer to exchange up to $735 million worth of 9.875% Senior Secured Second Lien Notes maturing in 2021. Later, on February 8, 2018, it disclosed investments in two Canadian cannabis cultivators and one U.S.-based hemp producer, reflecting its strategic move toward diversifying its product offerings.
Bribery and internal controls violations
In 2010, prior to its merger, Alliance One admitted guilt for bribery conducted through foreign subsidiaries in violation of the U.S. Foreign Corrupt Practices Act (FCPA). The settlement included payment of $9.5 million in criminal fines and disgorgement of $10 million in profits as part of an SEC civil enforcement action that also highlighted deficiencies in internal controls.
Thailand
Between 2000 and 2004, sales representatives from Dimon and Standard subsidiaries paid $1.9 million in bribes to officials at the Tobacco Authority of Thailand to secure business contracts. These actions were coordinated alongside competitor Universal Corporation.
Kyrgyzstan
A Dimon subsidiary operating in Kyrgyzstan made illicit payments to tobacco regulatory bodies, local government leaders (akims), and tax officials.
Kenya
Following restructuring efforts in 2015, Pyxus's Kenyan subsidiary disclosed that management had overridden internal controls leading to fabricated sales figures and an overstatement of inventory, receivables, and other assets by $39 million. The SEC mandated that the company cease violations related to filing obligations and record-keeping under the Securities Exchange Act.