Turning Point Buys Assets From Durfort and Blunt Wrap
Turning Point Brands (TPB), a provider of “other tobacco products” and adult consumer alternatives, has acquired tobacco assets and distribution rights from Durfort Holdings and Blunt Wrap USA for $46 million.
Durfort is the long-time supplier of TPB’s make-your-own cigar wrap products. The transaction combines Durfort’s and Blunt Wrap USA’s intellectual property and manufacturing know-how with TPB’s Zig-Zag MYO cigar wraps brand and national distribution.
“We are pleased to enter into this transaction with our business partner,” said Larry Wexler, TPB president and CEO. “In addition to the immediately accretive financial benefits, the transaction secures long-term control of our Zig-Zag MYO cigar wrap products and provides us access to a deep portfolio of tobacco products with significant immediate and future strategic value. This solidifies our current market position and provides a base for accelerated expansion with novel and leading-edge products.”
Through this transaction, TPB acquires co-ownership in the intellectual property rights of all Durfort’s and Blunt Wrap’s homogenized tobacco leaf cigar wraps and cones. The acquisition eliminates current royalty-related expenses on HTL cigar wraps and cones, providing for expanded margins. TPB will also enter into an exclusive master distribution agreement to market and sell the original Blunt Wrap cigar wraps brand in the USA. The master distribution agreement is expected to be effective in the next 120 days, adding complementary access to difficult-to-reach alternative channels.
“This partnership between Durfort and Turning Point Brands has been highly successful in introducing innovative products to the other tobacco products space,” said Danny Sinclair, founder of Durfort and Blunt Wrap USA. “Durfort looks forward to continuing to work with TPB in bringing exciting new alternative products to adult consumers and in expanding distribution of the Blunt Wrap brand through TPB’s nationwide distribution network.”