Japan Tobacco Inc. said today that it had concluded an agreement to acquire all outstanding shares of the U.K.-based e-cigarette supplier Zandera, known for its E-Lites brand.
Founded in 2009, Zandera sells what JT described as the most recognized range of high-quality rechargeable and ready-to-use e-cigarettes in the U.K.
“Our investment in Zandera provides the JT Group with an excellent entry-point into the fast-growing e-cigarette category,” commented Masamichi Terabatake, Japan Tobacco International’s executive vice president and deputy CEO.
“With E-Lites’ well-established brand and product portfolio, we are able to offer adult consumers another important extension to our growing range of emerging and innovative products, such as tobacco vapor pods (Ploom).”
JT said the executive management team of Zandera would remain with the JT Group post-acquisition to allow the group to leverage the team’s extensive knowledge and experience of the e-cigarette industry, their understanding of the product, technology and regulatory landscape.
“With access to the JT Group’s global distribution muscle as well as their research and development expertise, proven commitment to quality assurance and vision for emerging products, we look forward to growing the business and further enhancing E-Lites’ product offering,” said Adrian Everett, Zandera’s co-founder and CEO.
The transaction will be funded by the group’s existing cash and loan facilities and is expected to have a minor effect on its consolidated performance and cash flows for the fiscal year 2014.
JT expects to complete the acquisition during the second quarter of the fiscal year 2014, following regulatory clearance.