Altria's NJOY Acquisition
Is Altria $MO acquiring NJOY a good deal? Good for who? If the deal closes, Jason Mudrick probably won’t be too unhappy. His hedge fund, Mudrick Capital Management, took over NJOY after the company was successfully restructured in 2017 following its declared Chapter 11 bankruptcy the year prior. With the restructuring, NJOY, Inc. became NJOY, LLC. Since then, the company has developed new products and has captured a sliver of the U.S. market.

Oh, of course! Of course, Altria would want to buy a previously bankrupted brand that currently holds a tiny share of the U.S. e-vapor market. It can sit on the mantle next to JUUL!

Joking aside, it comes as no surprise that people are comparing the deal to JUUL. There are clear similarities. However, it’s also radically different.

Let’s dive in.

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Todor Kostov's avatar
@devinlasarre Thanks for the update, Devin.
Nathan Worden's avatar
Great analysis, sounds like there’s a lot we don’t know regarding which of the three product lines NJOYs sales were coming from.

The point about which geography sales are coming from is also important because of how differently these products are taxed in different states.

Great update!
Nathan Worden's avatar
I also found it interesting that Altria’s deep pockets could easily subsidize accelerated adoption of NJOY, so Altria may be the “best owner” of NJOY… but that still doesn’t necessarily make it a good acquisition.
Nathan Worden's avatar
Major props for actually buying all three products even though you don’t smoke or vape! That is some great investigative journalism right there!
Yegor's avatar
Altria is at it again



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