Lorillard said yesterday that it had acquired all of the assets and operations of Skycig, a U.K.-based electronic cigarette business.
In a note posted on its website, Lorillard said the acquisition provided it with a major U.K. electronic cigarette brand and, along with its U.S. electronic cigarette brand, Blu Ecigs, “a global presence in the rapidly growing worldwide e-cigarette category.” “Skycig is expected to benefit from Lorillard’s significant sales, marketing, regulatory, research and development expertise to further strengthen its competitive position in the U.K. e-cigarette market,” the note said.
Lorillard is paying £30 million in cash immediately and will pay an additional amount of up to £30 million in 2016 contingent on the “achievement of certain financial performance benchmarks.”
“Skycig is a leading premium brand of electronic cigarettes in the U.K.,” said Lorillard. “From its formation in 2011, it has achieved strong growth and has procured exceptional control over the manufacturing process, providing it with a unique ability to develop and commercialize high-quality products and meet continued developments in the regulatory environment.
“Skycig will operate as a separate operating subsidiary under Lorillard’s ownership, and it is Lorillard’s intention to retain Skycig’s current management team and its current business locations in Great Britain.”
“It has been Lorillard’s mission to be first and best in the electronic cigarette category, and with the acquisition of Skycig, our mission is now a global one,” said Murray Kessler, Lorillard chairman, president and CEO.
“We believe that with the addition of Skycig, Lorillard is uniquely positioned to lead the global e-cigarette industry to reach its full potential, and to do so in a responsible manner.
“We firmly believe that e-cigarettes may present the most significant harm reduction option ever made available to smokers in the U.S. and abroad, and we look forward to working with regulators around the world to confirm this conclusion.”