Altria in Talks to Buy NJOY: Report

Price tag for e-cigarette maker could start at $2.75 billion

Altria Group Inc. is in advanced talks to acquire electronic-cigarette company NJOY Holdings Inc. for at least $2.75 billion, according to a report by the Wall Street Journal, citing people familiar with the matter.

The deal for NJOY, one of the few e-cigarette makers whose products have clearance from federal regulators, could be announced as soon as this week, said the report, although the sources said talks could still fall apart. The proposed deal includes an additional $500 million earnout if certain regulatory milestones are met, the report said.

In June 2022, Scottsdale, Arizona-based NJOY hired bankers to explore the possibility of a sale, the Journal said.

Also in June, the U.S. Food and Drug Administration (FDA) issued marketing granted orders under the premarket tobacco product application (PMTA) process allowing NJOY to sell its NJOY Daily Rich Tobacco 4.5% and NJOY Daily Extra Rich Tobacco 6% disposable e-cigarettes. In April, the FDA authorized four NJOY Ace e-cigarette products: NJOY Ace Device, NJOY Ace Pod Classic Tobacco 2.4%, NJOY Ace Pod Classic Tobacco 5% and NJOY Ace Pod Rich Tobacco 5%.

Richmond, Va.-based Altria is a leading manufacturer of both combustible and smoke-free products. In combustibles, it owns cigarette maker Philip Morris USA Inc. and cigar maker John Middleton Co. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Co. LLC, a moist smokeless tobacco (MST) manufacturer, and Helix Innovations LLC, a manufacturer of oral nicotine pouches. Altria also has a majority-owned joint venture, Horizon Innovations LLC, for the U.S. marketing and commercialization of heated tobacco stick products and, through a separate agreement, it has the exclusive U.S. commercialization rights to the IQOS Tobacco Heating System and Marlboro HeatSticks through April 2024. The brand portfolios of its tobacco operating companies include Marlboro, Black & Mild, Copenhage, Skoal and on!.

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