RICHMOND, Va.--(BUSINESS WIRE)--Altria Group, Inc. (Altria) (NYSE:MO) today announced that its subsidiary, Nu Mark LLC (Nu Mark), entered into an agreement to acquire the e-vapor business of Green Smoke, Inc. and its affiliates (Green Smoke) for approximately $110 million in cash, subject to closing adjustments, and up to $20 million in incentive payments.
“Nu Mark’s entry into the e-vapor category with its MarkTen product was an important development in Altria’s innovation strategy. Adding Green Smoke’s significant e-vapor expertise and experience, along with its supply chain, product lines and customer service, will complement Nu Mark’s capabilities and enhance its competitive position,” said Marty Barrington, Altria’s Chairman and CEO. “Further, Green Smoke’s culture of innovation and history of producing high-quality products are consistent with Altria’s culture.”
Green Smoke was founded in 2008 and has operations in the United States and Israel. Green Smoke has sold e-vapor products since 2009 and its revenues for 2013 were approximately $40 million. Green Smoke sells premium products, with most of its sales in the United States. Its product lines, which are sold under the Green Smoke e-vapor brand, include both rechargeable and disposable versions. Green Smoke brings a team of talented employees with significant experience in developing, manufacturing and marketing high-quality e-cigarettes.
The agreement contains provisions to retain key management infrastructure and talent. Subject to closing conditions, Nu Mark anticipates that the transaction will be completed in the second quarter of 2014.
“We are very pleased to be joining the Altria family of companies,” said Robert Levitz, Green Smoke’s CEO. “We are dedicated to innovation and believe joining Nu Mark will help us deepen that expertise and create new opportunities for our customers, our employees and our products.”
Altria’s Profile
Altria directly or indirectly owns 100% of each of Philip Morris USA Inc, U.S. Smokeless Tobacco Company LLC, John Middleton Co., Nu Mark, Ste. Michelle Wine Estates Ltd. and Philip Morris Capital Corporation. Altria holds a continuing economic and voting interest in SABMiller plc.
The brand portfolios of Altria’s tobacco operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal® and MarkTen™. Ste. Michelle produces and markets premium wines sold under various labels, including Chateau Ste. Michelle®, Columbia Crest®, 14 Hands® and Stag’s Leap Wine Cellars®, and it imports and markets Antinori®, Champagne Nicolas Feuillatte™ and Villa Maria Estate™ products in the United States. Trademarks and service marks related to Altria referenced in this release are the property of Altria or its subsidiaries or are used with permission. More information about Altria is available at altria.com.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements, including expectations with respect to the proposed acquisition of Green Smoke, that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Important factors that may cause actual results and outcomes to differ materially from those contained in the forward-looking statements included in this press release include the parties’ ability to consummate the transaction as expected; the possibility that one or more of the conditions to the consummation of the transaction may not be satisfied; the possibility that regulatory approvals required for the transaction may not be obtained in a timely manner, if at all; the parties’ ability to meet expectations regarding the timing, completion and other matters relating to the transaction; and the other factors described in Altria’s publicly filed reports, including its Annual Report on Form 10-K for the year ended December 31, 2012, and its Quarterly Report on Form 10-Q for the period ended September 30, 2013.
Altria does not undertake to update any forward-looking statements that it may make except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements referenced above.
