Altria to Acquire E-Cigarette Startup NJOY for $2.8B
Altria Group, the maker of Marlboro cigarettes, has announced its latest move in the world of smoke-free products by acquiring e-cigarette startup NJOY for $2.75 billion. This acquisition will give Altria full global ownership of NJOY’s line of electronic vaping products, including NJOY ACE, the only pod-based e-vapor product with market authorizations from the FDA.
Altria’s CEO, Billy Gifford, believes that the company can responsibly accelerate the adoption of NJOY ACE by U.S. adult smokers and competitive adult vapers in ways that NJOY couldn’t achieve as a standalone company.
This move comes after Altria’s exit from its stake in electronic cigarette maker Juul Labs, which was valued at $12.8 billion in 2018 but faced scrutiny and legal issues over its alleged targeting of minors.
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The Altria-NJOY Deal: A Game-Changer in the Smoke-Free Products Industry
Despite its previous valuation of $12.8 billion, Juul Labs was on the verge of filing for bankruptcy last November. Its products continue to face scrutiny from the Food and Drug Administration (FDA), which temporarily pulled them off shelves nationwide last year. In September, Altria ended its noncompete agreement with Juul, signaling a shift in the company’s focus towards other tobacco-free nicotine products.
Sources say Altria, the maker of Marlboro cigarettes in the US, is nearing a deal to buy e-cigarette company Njoy for at least $2.75bn https://t.co/QLnw6dp7WI
— Financial Times (@FinancialTimes) February 28, 2023
One such product is e-cigarette startup NJOY, which Altria recently acquired for $2.75 billion. The deal includes $500 million in cash payments that are contingent on certain regulatory outcomes with their products. The company is one of the few vaping companies whose products have received full approval for sale from the FDA.
Altria’s CEO, Billy Gifford, believes that the company’s commercial resources can benefit adult tobacco consumers and expand competition by incorporating NJOY’s products into its portfolio. With this acquisition, Altria aims to responsibly accelerate the adoption of the company’s e-vapor products among adult smokers and competitive adult vapers.
ACQUISITION
IMAGE: Billy Gifford & Ryan Nivakoff
DATE: 03/06/2023BUYER: Altria Group Inc
SELLER: NJOY Holdings IncPRICE: $2,750,000,000 (Approx.)
NOTE: Altria Group Inc. is set to acquire e-ci…
View full post on Instagram: https://t.co/NJhqbsvToN pic.twitter.com/mYsWPP0rHU
— Traded: Venture Capital (@TradedVC) March 8, 2023
Is NJOY a safe brand?
NJOY is a company that produces electronic cigarettes and vaping devices. Their products are 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 on Altria’s NJOY Deal
In conclusion, Altria’s acquisition of NJOY is a significant move in the tobacco industry as the company continues to pivot toward smoke-free products. With this acquisition, Altria gains ownership of the brand’s e-vapor product portfolio, including the FDA-approved NJOY ACE. This deal is a strategic move for Altria, as the company looks to responsibly accelerate the adoption of NJOY’s products among adult smokers and vapers.
However, the safety and health implications of e-cigarettes and vaping devices remain debated and concerned. Therefore, readers may question whether this acquisition is a positive development for public health or whether it further entrenches the tobacco industry’s influence.
What are your thoughts on Altria’s purchase of NJOY and the future of smoke-free products?
