Altria Buys Njoy, Abandons Juul as It Shifts Vaping Strategy

  • Once-vaunted Juul pact ends with billions in value lost
  • Altria to pay at least $2.75 billion for Njoy, as expected
A Juul Labs e-cigarette, USB charger, and flavored pods.Source: Bloomberg
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Altria Group Inc. agreed to buyBloomberg Terminal vaping startup Njoy Holdings Inc. for at least $2.75 billion in cash while bringing its ignominious journey with closely held Juul Labs Inc. to an end, signaling a new direction as the tobacco company keeps trying to accelerate a shift toward cigarette alternatives.

Altria announced the Njoy deal Monday, confirming reports from last month. The company could pay as much as $500 million more depending on US Food and Drug Administration approvals of certain Njoy products.