In a bid to strengthen its portfolio of smoke-free merchandise, Altria Group stated Monday it might purchase e-cigarette startup NJOY for $2.75 billion.
Altria, which makes Marlboro cigarettes, can have full international possession of NJOY’s e-vapor product portfolio, together with NJOY ACE, the one pod-based e-vapor product with market authorizations from the FDA.
“We imagine we are able to responsibly speed up U.S. grownup smoker and aggressive grownup vaper adoption of NJOY ACE in ways in which NJOY couldn’t as a standalone firm,” Altria CEO Billy Gifford stated.
The announcement comes quickly after Altria exited its stake in digital cigarette maker Juul Labs. Altria acquired a stake in Juul Labs that was valued at $12.8 billion in 2018, however the deal shortly soured amid scrutiny from federal regulators and 1000’s of lawsuits that claimed the Juul had focused minors. Altria’s Juul stake was just lately valued at $250 million, in line with Reuters.
Juul got here near submitting for chapter in November, and its merchandise stay beneath scrutiny of the Meals and Drug Administration, which pulled them off cabinets nationwide briefly did final yr. In September, Altria ended its noncompete settlement with Juul.
The Altria-NJOY deal contains $500 million in money funds contingent on sure regulatory outcomes with NJOY merchandise.
NJOY has six merchandise which have acquired full approval on the market from the U.S. Meals and Drug Administration. It is one of many few vaping firms whose merchandise have clearance from federal regulators.
“We imagine the strengths of our industrial assets can profit grownup tobacco shoppers and develop competitors,” Gifford added.