Will now own the only capsule-based e-vapor product with FDA clearances on the market.
Altria is purchase full global ownership by private company NJOY to take control of the only capsule-based e-vapor product with marketing authorizations from the US Food and Drug Administration (FDA).
The $2.75 billion cash deal includes an additional $500 million in cash payments subject to regulatory outcomes for certain NJOY products.
Altria has multiple funding sources, including committed short-term bank financing and an expected $1.7 billion payment from Philip Morris International by July 2023.
SMALL FIRE ON FLIGHT RELATED TO VAPE DEVICE BATTERY
Altria CEO Billy Gifford said, “We believe we can responsibly accelerate the adoption of U.S. adult smokers and competitive adult vapers.”
“As a result of this transaction, Altria’s expanded smokeless product portfolio will include product and technology ownership in the top three smokeless product categories, as well as a joint venture with JT Group to commercialize heated tobacco stick products in the United States,” he added.
Currently, the e-vapor sector is the largest category of smokeless products in the US.
In 2022, the sector included 14 million adult tobacco users in the US, including 9.5 million exclusive adult vaping. Retail sales of this sector in the US amounted to about $7 billion; and represents approximately 15% of total US tobacco equivalents and more than 50% of total estimated smokeless tobacco equivalents, according to the US E-Vapor Marketplace and Regulatory Dynamics.
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Credit: www.foxbusiness.com /