Lorillard (LO) continues its expansion by purchasing a UK-based electronic cigarette maker for about $49 million.
The Huffington Post reports that the company acquired SKYCIG with the hopes of being competitive in the fast-growing e-cigarette industry. Lorillard paid 30 million pounds (449 million) for the e-cigarette maker and it will dish out another 30 million pounds if the company meets certain financial goals.
Lorillard is the third-largest tobacco company in the U.S. and it said that SKYCIG will operate as a subsidiary. The tobacco giant acquired Blu Ecigs — another e-cigarette maker — for $135 million last year.
The electronic cigarette industry has grown exponentially over the last few years with millions of users now consuming them.