Altria Scoops e-Cigarette Maker NJOY Holdings For $2.75B Cash - Altria Group (NYSE:MO)

Altria Group Inc MO entered into a definitive agreement to acquire NJOY Holdings Inc for $2.75 billion in cash payable at closing.
The transaction terms include additional $500 million in cash payments that are contingent upon regulatory outcomes with respect to certain NJOY products.
Last week, there were reports that Altria is reportedly in talks to buy the e-cigarette startup NJOY Holdings.
Altria will gain full global ownership of NJOY's e-vapor product portfolio, including NJOY ACE, currently the only pod-based e-vapor product with market authorizations from the FDA.
The company expects the transaction to be accretive to cash flow within two years of closing and accretive to adjusted EPS within three years of closing.
"We believe we can responsibly accelerate U.S. adult smoker and competitive adult vaper adoption of NJOY ACE in ways that NJOY could not as a standalone company," said CEO Billy Gifford.
The company held $4.03 billion in cash and equivalents as of Dec. 31, 2022.
Outlook: Altria reaffirmed its FY23 adjusted EPS outlook of $4.98 - $5.13, representing a growth rate of 3%-6% from an adjusted diluted EPS base of $4.84 in 2022.
Related: Altria Eyes e-Cigarette Maker NJOY & Plans To Divest Juul Stake: Report
Price Action: MO shares are trading lower by 0.13% at $46.47 in premarket on the last check Monday.