Tag: Vector Tobacco

  • Japan Tobacco Acquires Vector Group

    Japan Tobacco Acquires Vector Group

    The JT Group will acquire Vector Group (VGR), the fourth largest tobacco company in the United States.

    Based on the purchase agreement, the JT Group will conduct a tender offer for all outstanding shares of VGR through Vapor Merger Sub, an entity established specifically for this acquisition.

    The JT Group intends to acquire 100 percent of VGR’s outstanding fully diluted share capital for a per share price of $15, representing a total equity value transaction estimated at around $2.4 billion. The transaction, which is unanimously supported by the board of directors of VGR, is expected to be completed by Dec. 31, 2024, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following closing, VGR will be a wholly owned consolidated subsidiary of JT and be delisted from the New York Stock Exchange.

    “Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.

    “This transaction delivers significant value to Vector Group stockholders and creates opportunities for our employees, who will become part of a leading global organization. Vector Group has an incredibly talented team who have been completely dedicated to building a strong business. JT Group has deep respect for Liggett Vector Brands’ legacy of value-focused, quality products and looks forward to continuing to meet customers’ evolving needs.”

    “We are excited by this acquisition which, in line with our tobacco business strategy, will contribute to the acceleration of the ROI [return on investment] in our combustible business and expand JT Group’s global footprint,” said Masamichi Terabatake, JT Group CEO and president of the company’s tobacco business, in a statement.

    “By adding this sizeable and historically profitable business to our company, we are confident the transaction will contribute to sustainable growth and increase JT Group’s corporate value.”

    “This transaction will significantly increase our U.S. presence, boosting our market share from 2.3 percent to approximately 8 percent and giving us full ownership of two of the top-10 U.S. cigarette brands,” said Eddy Pirard, president and CEO of JT International.

    “The transaction will enable us to also strengthen our distribution network and create mid- to long-term strategic opportunities to boost our competitiveness in this major tobacco market.”

  • Discounters Contest Minimum Price

    Discounters Contest Minimum Price

    Photo: Tobacco Reporter archive

    Liggett Group, Vector Tobacco and Xcaliber International, together with a Colorado citizen and cigarette smoker, have filed a motion for a preliminary injunction against the State of Colorado in a United States Federal Court. The motion seeks to enjoin Colorado from enforcing the recently enacted Colorado minimum cigarette price requirement, which would raise retail cigarette prices for Colorado consumers to premium brand levels.

    The motion alleges that the requirement was inserted into a cigarette tax increase bill solely to secure support for the bill from Philip Morris, the largest U.S. seller of premium cigarettes. The motion also alleges that the minimum price requirement violates the Commerce Clause of the U.S. Constitution by favoring Colorado retailers’ in-state economic interests over the interests of out-of-state discount manufacturers.

    Further, the complaint alleges that the minimum price requirement was not properly disclosed to Colorado voters who approved the bill on Election Day. “Voters believed that the tax increases would benefit education and other public purposes, when in fact all of the benefit of the minimum price provision will go to retailers, Philip Morris and other premium cigarette manufacturers, and none to the State of Colorado,” the plaintiffs wrote in a statement.