On Monday, Altria (MO) expanded its presence in the e-cigarette market, acquiring startup Green Smoke through its Nu Mark subsidiary.
Under the deal, Altria will pay $110 million in cash for Green Smoke’s e-cigarrette business. The purchase will also cost Altria as much as $20 million in incentive payments.
Established in 2008, Green Smoke operates in Israel and the U.S. Its e-cigarrette business generated sales of roughly $40 million last year. Altria will acquire its disposable and rechargeable e-cigarette products. Green Smoke’s development team will also joint Altria.
The deal to add Green Smoke to Altria’s Nu Mark unit is expected to be finalized during the second quarter of this year.
Last summer, Altria became the last U.S. cigarette maker to launch its own e-cigarrete line.
Altria stock fell almost 2% in Monday morning trading. Altria stock has gained about 4% over the past year.