Marlboro Maker Altria to Buy NJOY for $2.8 Billion


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Marlboro Maker Altria to Buy NJOY for $2.8 Billion

Introduction

Altria Group, the company that makes Marlboro cigarettes, has announced that it will be acquiring e-cigarette startup NJOY for $2.75 billion, a deal which includes $500 million in cash payments that are contingent on certain regulatory outcomes with their products. The acquisition will give Altria full global ownership of NJOY’s line of electronic vaping products, including their flagship product, NJOY ACE.

Background

In light of their exit from Juul Labs, which had been valued at $12.8 billion in 2018, Altria’s acquisition of NJOY marks the company’s latest move into smoke-free products. While concerns about the safety and health implications of e-cigarettes and vaping devices remain, Altria’s CEO, Billy Gifford, believes that the company’s commercial resources can expand competition by incorporating NJOY’s products into its portfolio and that they can accelerate the adoption of NJOY’s e-vapor products among adult smokers and competitive adult vapers.

About NJOY Brand

NJOY is a company that produces electronic cigarettes and vaping devices designed for adult smokers who are looking for an alternative to traditional combustible tobacco products. The company offers various products, including the NJOY ACE, which is a compact, portable vaping device that uses a magnetic pod system to help prevent leakage and spills.

Final Thoughts

Despite concerns about the safety and health implications of e-cigarettes and vaping devices, Altria’s acquisition of NJOY is a significant move in the tobacco industry as the company pivots toward smoke-free products. With Altria’s commercial resources and global influence, they aim to accelerate the adoption of NJOY’s products among adult smokers and vapers.

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