Altria Scoops e-Cigarette Maker NJOY Holdings For $2.75B Cash

Shivani Kumaresan
1 min read
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In this article:

  • Altria Group Inc (NYSE: MO) entered into a definitive agreement to acquire NJOY Holdings Inc for $2.75 billion in cash payable at closing.

  • The transaction terms include additional $500 million in cash payments that are contingent upon regulatory outcomes with respect to certain NJOY products.

  • Last week, there were reports that Altria is reportedly in talks to buy the e-cigarette startup NJOY Holdings.

  • Altria will gain full global ownership of NJOY's e-vapor product portfolio, including NJOY ACE, currently the only pod-based e-vapor product with market authorizations from the FDA.

  • The company expects the transaction to be accretive to cash flow within two years of closing and accretive to adjusted EPS within three years of closing.

  • "We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company," said CEO Billy Gifford.

  • The company held $4.03 billion in cash and equivalents as of Dec. 31, 2022.

  • Outlook: Altria reaffirmed its FY23 adjusted EPS outlook of $4.98 - $5.13, representing a growth rate of 3%-6% from an adjusted diluted EPS base of $4.84 in 2022.

  • Related: Altria Eyes e-Cigarette Maker NJOY & Plans To Divest Juul Stake: Report

  • Price Action: MO shares are trading lower by 0.13% at $46.47 in premarket on the last check Monday.

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This article Altria Scoops e-Cigarette Maker NJOY Holdings For $2.75B Cash originally appeared on Benzinga.com

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