British American Tobacco US, mostly known for its acronym BATUS, was the
United Statessubsidiary 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.
BATUS 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 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
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.
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.