Altria has acquired an 80 percent stake in the Swiss tobacco company Burger Soehne for $372 million, reports CNBC.
As part of the deal, Altria will provide global distribution for Burger Soehne’s oral nicotine pouches On. Once the all-cash transaction closes in the second half of the year, Burger Soehne’s businesses will become part of Altria’s newly formed subsidiary Helix Innovations.
The deal marks Altria’s latest attempt to diversify as its cigarette business shrinks. Altria has previously invested in cannabis through Cronos, took a stake in Juul, and will soon start selling IQOS in the U.S. through an agreement with Philip Morris International.
“This acquisition will add another non-combustible product to our portfolio in what we believe is a high-potential, rapidly-developing oral products category,” Altria CEO Howard Willard said in a statement.