Altria is purchasing full global ownership of privately-held NJOY to take control of the only pod-based e-vapor product with market authorizations from the U.S. Food and Drug Administration (FDA).
The $2.75 billion cash deal includes an additional $500 million in cash payments contingent upon regulatory outcomes with respect to certain NJOY products.
Altria has multiple sources of funding, including committed short-term bank financing and an expected $1.7 billion payment from Philip Morris International by July 2023.
SMALL FIRE ON FLIGHT BLAMED ON VAPING DEVICE BATTERY
Altria CEO Billy Gifford said, "We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption."
"As a result of this transaction, Altria’s enhanced smoke-free portfolio will include ownership of products and technologies across the three largest smoke-free categories and a joint venture with JT Group for the U.S. commercialization of heated tobacco stick products," he added.
Currently, the e-vapor sector is the largest smoke-free category in the U.S.
In 2022, the sector Included early 14 million U.S. adult tobacco consumers, including 9.5 million exclusive adult vapors. The sector generated approximately $7 billion in U.S. retail sales; and represented approximately 15% of total estimated equivalized U.S. tobacco volumes and more than 50% of total estimated equivalized smoke-free tobacco volumes, according to U.S. E-Vapor Marketplace and Regulatory Dynamics.
