On Monday, Altria Group Inc announced that it will acquire e-cigarette startup NJOY Holdings Inc for approximately $2.75 billion in cash.

This move represents Altria’s latest attempt to tap into the rapidly expanding e-cigarette market, following significant financial losses resulting from its investment in Juul.

Amidst thousands of lawsuits and rumors of impending bankruptcy, the tobacco giant has traded its investment in Juul for some of the vaping company’s heated tobacco intellectual property, Reuters reported.

As of December 2022, the value of Altria’s investment in Juul had plummeted to $250 million, down from the $12.8 billion initially invested in 2018.

According to Altria, the NJOY agreement will involve an extra $500 million in cash payments, which will be contingent upon the regulatory results concerning specific NJOY products.

NJOY is among a small group of vaping firms that have obtained clearance from federal regulators for their products, as reported by Reuters.

The company produces NJOY Ace Pods, which are presently the sole pod-based e-vapor goods authorized by the U.S. Food and Drug Administration, as well as disposable e-cigarettes under the NJOY Daily brand.

Written by staff