Altria to buy e-cigarette startup NJOY for about US$2.75-billion after Juul exit

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The NJOY deal will include an additional $500-million in cash payments subject to regulatory outcomes related to some NJOY products, Altria said

NJOY is one of the handful of vaping companies whose products have clearance from federal regulators. It makes NJOY Ace Pods – currently the only pod-based e-vapor product with market authorizations from the U.S. Food and Drug Administration – and disposable e-cigarettes under the NJOY Daily brand.

Altria said it had multiple sources of funding for the deal, including cash from a $2.7-billion agreement it entered with Philip Morris International Inc last year for the IQOS Tobacco Heating System. The buyout is expected to add to Altria’s adjusted per-share profit within three years of closing. The company, which did not provide a timeline for deal completion, also reaffirmed its outlook for a profit of $4.98 to $5.13 per share in 2023.Tickers mentioned in this storyBuild your personal news feed

 

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