Altria has announced its intention to acquire NJOY for $2.75 billion in cash just days after selling its investment in Juul Labs, another vaping business now embroiled in legal problems.
CEO Billy Gifford stated in a press release, “We believe we can responsibly accelerate the adoption of NJOY ACE among U.S. adult smokers and competitive adult vapers in ways that NJOY alone could not,” We believe that the strengths of our commercial resources can benefit adult tobacco users and increase competitiveness.
While Juul offers a comparable selection of so-called smoke-free goods, it confronts a number of legal obstacles that, according to Gifford, are likely to endure for the foreseeable future.
“Juul faces tremendous regulatory and legal obstacles and uncertainties, many of which could persist for decades,” he warned.
Yet, certain legal challenges persist. The agreement says that $500 million in cash payments are reliant on the regulatory clearance of certain NJOY items.
The owner of Marlboro cigarettes continues to promote its interest in vaping and electronic cigarettes to encourage smokers to switch to vaping alternatives.
“We are thrilled to add NJOY’s e-vapor intellectual property as a new platform on which we believe we can help more adult smokers transition to smoke-free alternatives,” said Olivier Houpert, Altria’s chief innovation and product officer.