Marlboro maker buys e-cig company NJOY, exits investment in Juul

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Marlboro maker buys e-cig company NJOY for around $2.75 billion, exits investment in Juul

Altria Group has agreed to buy e-cigarette company NJOY for around $2.75 billion in cash, and exit its minority investment in vaping company Juul Labs.The Marlboro maker is officially switching electronic horses, five years after burning $12.8 billion for a 35% stake in Juul.Altria could pay up to another $500 million for NJOY, based on earnouts tied to regulatory approvals.

The sale of its Juul stake, valued at just $250 million at year-end 2022, is in exchange for a non-exclusive global license to the company's heated tobacco IP rights.: "We are no longer limited by the terms of those agreements to pursue other strategic opportunities and partnerships. We are free to take advantage of a range of options to maximize the value of our company while we continue to advance our leading product technology and innovation pipeline.

It raised hundreds of millions of dollars in subsequent funding from firms like ArmaVir Partners and Northwood Ventures.

 

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