Imperial Tobacco has bought the worldwide Davidoff cigarette brand for 540 million euros (£368 million), from Tchibo Holding.
The acquisition is subject to clearance from the German Federal Cartel Office.
Imperial has been the licensee of the trademark since it bought Germany's Reemtsma in 2002.
Chief executive Gareth Davis described it as a key international strategic premium brand and an important growth driver.
Global volumes have increased in four years.
"As well as significantly enhancing our brand equity this acquisition provides greater flexibility to develop the brand," he said.
Oettinger Davidoff Group owns the worldwide Davidoff trademark for tobacco other than cigarettes. Imperial shares fell 8p to 1805p.