Marlboro’s parent company Altria is to acquire e-cigarette startup NJOY for $2.75 billion.

Altria Group Inc. has reached an agreement to buy e-cigarette startup NJOY Holdings for $2.75 billion. Photo from file sarahjohnson1/Pixabay

March 6 (UPI) – Altria Group Inc. has reached an agreement to buy e-cigarette startup NJOY Holdings for $2.75 billion.

Marlboro parent company announced acquisition of NJOY Monday, saying it would enhance its “smoke-free portfolio”.

“We believe we can responsibly accelerate the adoption of NJOY ACE by adult smokers and competitive adult vapers in the US in a way that NJOY as a standalone company could not,” said Billy Gifford, CEO of Altria.

“We believe that the strengths of our commercial resources can benefit adult tobacco users and increase competition. We are also delighted to welcome the talented NJOY staff to Altria for the closing.”

Purchase follows Altria Group cancel your bid at another e-cigarette company, Juul. Altria’s defunct Juul deal has lost billions of dollars, according to Bloomberg. Altria’s original buy-in was valued at around $12.8 billion and dropped to around $250 million.

“Returning our equity stake in Altria and terminating our core agreements gives us complete strategic freedom—we are no longer constrained by the terms of these agreements to pursue other strategic opportunities and partnerships,” Juul Labs said in a statement. statement on Friday.

According to Altria, about 9.5 million adult tobacco users use e-cigarettes exclusively. In 2022, domestic sales of E-vapor products were about $7.5 billion.

Centers for Disease Control and Prevention informed that research on the long-term effects of e-cigarette use is ongoing, but it is noted that defective batteries have caused devices to explode and cause injury to users. The agency also said that flavored vaping products are for youth, although Altria cites a University of Michigan study that suggests youth nicotine use has dropped by about 24% from 2019 to 2022.

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