JT acquires Vector Group, America's fourth-largest tobacco company
Japan Tobacco Inc. (JT), a manufacturer of tobacco, food, pharmaceuticals, etc., has announced that it will acquire American tobacco company Vector Group (VGR).
Notice regarding the conclusion of an agreement for the acquisition of U.S. tobacco company 'Vector Group Ltd.' by our group - 20240821_J1.pdf
(PDF file)
Vector Group Announces Agreement to be Acquired by JT Group | Vector Group LTD.
Japan Tobacco Acquires Vector Group – Tobacco Reporter
https://tobaccoreporter.com/2024/08/21/japan-tobacco-to-acquire-vector-group/
According to the announcement, JT has reached an agreement with VGR on the acquisition and will launch a tender offer for all of VGR's outstanding shares, aiming to make VGR a wholly owned subsidiary, at $15 per share (approximately 2,180 yen).
JT expects the total transaction value to be $2.4 billion, or approximately 378 billion yen, according to JT. As a result of the subsidiary acquisition, VGR will be delisted from the New York Stock Exchange. The transaction has been unanimously approved by VGR's board of directors and is expected to close by December 31, 2024.
Masamichi Terahata, President and CEO of JT, said, 'We have high expectations for this acquisition, which is in line with our tobacco business strategy and will contribute to improving the ROI of Combustibles (combustible tobacco products excluding contract manufacturing, waterpipe tobacco, heated tobacco, smokeless tobacco, and e-vapor) and further advance the JT Group's global expansion. We are confident that adding VGR's business, which has established a solid presence in the profitable U.S. market, to the JT Group will contribute to sustainable growth and increased corporate value.'
VGR CEO Howard M. Lorber said in a statement, 'VGR and the JT Group share a commitment to quality and excellence and deliver a superior value proposition to consumers in the U.S. tobacco market. This transaction creates significant value for VGR shareholders and opportunities for our employees, who will become part of a world-leading organization. VGR has an incredibly talented team that has been dedicated to building a strong business. The JT Group has a deep respect for the Liggett Group (a VGR subsidiary) and the VGR brand's legacy of value-driven, high-quality products, and we look forward to continuing to meet our customers' evolving needs.'
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