Altria In Talks To Buy E-cigarette Startup NJOY For At Least $2.75 Bln : Report

(RTTNews) - Marlboro maker Altria Group Inc. (MO) is in advanced talks to buy e-cigarette startup NJOY Holdings Inc. for at least $2.75 billion, the Wall Street Journal reported citing people familiar with matter.

Altria reportedly plans to divest its stake in Juul Labs Inc.

The deal for NJOY could be announced as soon as this week, though the talks could still fall apart. The proposed deal includes an additional $500 million earnout if certain regulatory milestones are met, the report said.

According to the report, Altria in 2018 paid $12.8 billion for a 35% stake in Juul Labs. Altria now values Juul at $714 million—down from the $38 billion valuation when Altria first invested.