JT Group has agreed to acquire discount cigarette maker Vector Group for about ¥348.6 billion ($2.4 billion) to expand into the U.S. The company changed its policy after the war in Russia stalled its growth.
The Japanese tobacco company plans to acquire all of Miami-based Vector for $15 per share, according to a statement Wednesday. The purchase price represents a 7.2% premium over Vector’s closing price on Tuesday in New York.
The deal will increase Japan Tobacco’s U.S. market share from 2.3% to about 8% and give it ownership of two of the top 10 U.S. cigarette brands, said Eddy Pirard, CEO of JT International. The U.S. is the world’s most profitable market for tobacco companies.
