Altria is in talks to buy e-cigarette startup NJOY Holdings for at least $2.75B.
According to sources, the Marlboro cigarette maker also plans to divest its stake in embattled e-cigarette maker Juul Labs. The deal could be announced as soon as this week.
The agreement includes an additional $500M earnout if certain regulatory milestones are met.
- NJOY is one of the few e-cigarette companies whose products have clearance from federal regulators.
- In 2018, Altria acquired a 35% stake in Juul Labs for $12.8B as it sought to establish an e-cigarette line as the use of traditional cigarettes declined.
- Juul has been embroiled in disputes with federal regulators and several lawsuits alleging the company targeted minors.
- Altria currently values the firm at $714M.
