US: Japan Tobacco to complete acquisition of Vector Group

Japan Tobacco (JT), the leading tobacco company, has announced it has completed the acquisition of Vector Group (VGR), the fourth largest tobacco company in the United States, after a tender offer initiated in August.

Vector Group is a holding company for Liggett Group LLC, Vector Tobacco LLC and New Valley LLC. Founded in 1873, Liggett Group is the operating successor to Liggett & Myers Tobacco Company and has a brand portfolio that includes Eve, Grand Prix, Pyramid, Liggett Select and Eagle 20’s.

In a statement, JT said the acquisition was expected to add a growing and historically profitable business improving JP Group’s return-on-investment in combustibles by increasing the presence and distribution of the group in the US, the second largest tobacco market in net sales and one of the most profitable.

Commenting on the move, Eddy Pirard, president and CEO of JT International commented: “This transaction will significantly increase our US presence, boosting our market share from 2.3% to approximately 8.0% and giving us full ownership of two of the top-10 US cigarette brands. The transaction will enable us to also strengthen our distribution network, and create mid to long term strategic opportunities to boost our competitiveness in this major tobacco market”.

Source: Japan Tobacco / Vector Group