Altria, the multinational tobacco firm, has announced a definitive agreement to acquire e-cigarette company NJOY Holding for about $2.75 billion in cash.
NJOY is described as a leading brand of pod-based e-vapour products with 33,000 retail stores in the US.
Commenting on the deal, Altria CEO Billy Gifford said: “We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company. We believe the strengths of our commercial resources can benefit adult tobacco consumers and expand competition”.
“As a result of this Transaction, Altria’s enhanced smoke-free portfolio will include full global ownership of products and technologies across the three largest smoke-free categories and a joint venture with JT Group for the U.S. commercialization of heated tobacco stick products”, he added.
E-vapour is the largest smoke-free category in the US, with nearly 14 million adult tobacco consumers and retail sales of $7 billion.