Imperial Brands, the UK-headquartered tobacco giant, has announced the acquisition of Black Buffalo, a modern oral nicotine business based in the United States. The transaction involves an initial consideration of $150 million, with an additional deferred sum based on performance over three years and other criteria.
Established in 2015, Black Buffalo manufactures tobacco alternative long cut and pouch products that emulate traditional moist smokeless tobacco without utilizing tobacco leaf or stem. Produced in North Carolina using US-grown barn-cured leafy greens, pharmaceutical-grade nicotine, and food-grade flavour, the brand targets legal adult consumers.
The acquisition expands Imperial Brands’ oral portfolio beyond its existing zone range of flavoured nicotine pouches.
Lukas Paravicini, chief executive officer of Imperial Brands, stated: “This acquisition reflects our disciplined and focused approach to building a stronger next generation product portfolio in markets where we see attractive long-term growth opportunities.” Kim Reed, President and Chief Executive Officer of Imperial Brands’ US subsidiary ITG Brands, added that the transaction strengthens the firm’s ability to compete and grow across differentiated segments.
Following the transaction, the Black Buffalo team will join the Imperial Brands team.
Source: Imperial Brands
