Altria to Acquire NJOY for $2.75 Billion
Recently, according to reports from ConvenienceStore, Altria is actively pursuing a deal to acquire NJOY Holdings for $2.75 billion. The company announced that the waiting period, as stipulated by the 1976 Hart-Scott-Rodino Antitrust Improvements Act, has ended and there is no further need for regulatory scrutiny by the Federal Trade Commission.
It is expected that this transaction will be completed in the second quarter of 2023, subject to meeting standard transaction conditions. The terms of the deal also include an additional $500 million cash payment, contingent upon the regulatory outcome of NJOY products.
Altria CEO Billy Gifford stated during the announcement of the acquisition:
We believe that we can responsibly accelerate the use of NJOY ACE products among adult smokers and adult e-cigarette users in the United States, which is something that NJOY, as an independent company, cannot achieve.
He also stated:
We believe that our business resources can benefit tobacco consumers and expand competition. We are also pleased to welcome NJOY's excellent employees to Altria after the transaction is completed.
According to reports from Gifford, Altria will have global ownership over the three largest categories of smokeless products and technologies, as well as a joint venture with JT Group, after completing the acquisition. This move is expected to aid in the promotion of heated tobacco products in the United States.
According to reports, the electronic cigarette category is the largest smokeless category in the United States, attracting nearly 14 million American adult tobacco consumers in 2022, including 9.5 million adult electronic cigarette users.
During Altria's Investor Day conference on March 23rd, the company announced that its sales of smokeless products would increase by at least 35% from their 800 million unit base in 2022, reaching a revenue of $5 billion by 2028. $2 billion of this revenue is expected to come from the company's innovative smokeless products.
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The Altria and NJOY agreement is nearing completion.
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