Altria: takes 35% stake in e-vapor company Juul
(CercleFinance.com) - Altria Group has said that it has taken a 35% stake in Juul for 12.
8 billion dollars, in a deal valuing the US e-vapor company at 38 billion dollars.
"We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes," the maker of the Marlboro cigarettes said in a statement.
Juul has quickly grown to represent approximately 30% of the total US e-vapor category today.
The firm will remain fully independent, Altria said.
Altria said that it financed this deal through a 14.6 billion dollar loan facility.
To offset most of the expense, Altria has launched a cost-reduction program designed to deliver approximately 500 million dollars to 600 million dollars in annualized cost savings by the end of 2019, notably through redundancies.
Altough Altria confirmed its guidance for 2018, the shares fell by 3% in early-morning trading on Thursday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
8 billion dollars, in a deal valuing the US e-vapor company at 38 billion dollars.
"We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes," the maker of the Marlboro cigarettes said in a statement.
Juul has quickly grown to represent approximately 30% of the total US e-vapor category today.
The firm will remain fully independent, Altria said.
Altria said that it financed this deal through a 14.6 billion dollar loan facility.
To offset most of the expense, Altria has launched a cost-reduction program designed to deliver approximately 500 million dollars to 600 million dollars in annualized cost savings by the end of 2019, notably through redundancies.
Altough Altria confirmed its guidance for 2018, the shares fell by 3% in early-morning trading on Thursday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.