Bulletin
Investor Alert

The Wall Street Journal Archives | Email alerts

Dec. 20, 2018, 10:02 a.m. EST

Altria takes $13 billion stake in e-cigarette maker Juul

Juul says the partnership ‘could help accelerate our success switching adult smokers’

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Altria Group Inc. (MO)

or Cancel Already have a watchlist? Log In

By Allison Prang


Getty Images

Altria Group Inc. said Thursday it invested $12.8 billion in cash in Juul Labs Inc., giving it a 35% stake in the e-cigarette firm and helping add to its portfolio outside of regular cigarettes.

The cash investment values Juul at about $38 billion, pushing the closely held company’s valuation past other startups such as Pinterest Inc. and Elon Musk’s Space Exploration Technologies Corp. Altria /zigman2/quotes/208895754/composite MO +0.76% said Juul will stay completely independent.

The Wall Street Journal reported Wednesday that Altria was getting close to a deal with Juul.

“We understand the controversy and skepticism that comes with an affiliation and partnership with the largest tobacco company in the U.S.,” Juul Chief Executive Kevin Burns said in a written statement Thursday. “We were skeptical as well. But over the course of the last several months we were convinced by actions, not words, that in fact this partnership could help accelerate our success switching adult smokers.”

Altria Chief Executive Howard Willard said the Juul investment is about preparing for a time when people choose noncombustible products over cigarettes, calling Juul a leader in switching adult smokers.

—Jennifer Maloney and Dana Mattoli contributed to this article.

An expanded version of this report appears at WSJ.com .

Most popular at WSJ.com :

In shift, Trump orders U.S. troops out of Syria .

Trump’s attorney general pick criticized in Mueller in memo .

/zigman2/quotes/208895754/composite
US : U.S.: NYSE
$ 48.82
+0.37 +0.76%
Volume: 8.50M
Nov. 21, 2019 6:30p
P/E Ratio
52.07
Dividend Yield
6.88%
Market Cap
$90.51 billion
Rev. per Employee
$2.36M
loading...

Get news alerts on Altria Group Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.