Altria Group Inc, one of the world’s largest producers and marketers of tobacco, cigarettes, and related products, is reportedly in advanced talks to buy e-cigarette startup NJOY Holdings Inc for at least $2.75 billion.
According to a report by The Wall Street Journal citing people familiar with the matter, the deal for NJOY, one of the few e-cigarette makers to have secured clearance from federal regulators, could be announced as soon as this week.
The proposed deal is said to include an additional $500 million earnout if regulatory milestones are met.
READ: Paycore Minerals stock jumps on takeover deal plus more daily small cap movers
Per the report, Altria is also planning to divest its stake in Juul Labs Inc after it purchased a 35% stake in the e-cigarette company in 2018.
In September, Altria exercised the option to be released from its non-compete deal with Juul.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie