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.
Copyright Business Wire 2014