Deal Values the E-Vapor Leader at $38 Billion
A team of Pillsbury lawyers led by Corporate partners Jorge del Calvo and Justin Hovey represented JUUL Labs, Inc., in Altria Group, Inc.’s $12.8 billion investment in the U.S. e-vapor leader. According to the companies’ press release, the service agreements will accelerate JUUL’s mission to switch adult smokers to e-vapor products. Altria’s investment represents a 35 percent economic interest in JUUL, valuing the company at $38 billion. JUUL will remain fully independent. "This investment and the service agreements will accelerate our mission to increase the number of adult smokers who switch from combustible cigarettes to JUUL devices."
“We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes by investing $12.8 billion in JUUL, a world leader in switching adult smokers,” said Howard Willard, Altria’s Chairman and Chief Executive Officer. “We have long said that providing adult smokers with superior, satisfying products with the potential to reduce harm is the best way to achieve tobacco harm reduction. Through JUUL, we are making the biggest investment in our history toward that goal. We strongly believe that working with JUUL to accelerate its mission will have long-term benefits for adult smokers and our shareholders.”
“Altria’s investment sends a very clear message that JUUL’s technology has given us a truly historic opportunity to improve the lives of the world’s one billion adult cigarette smokers,” said Kevin Burns, Chief Executive Officer of JUUL. “This investment and the service agreements will accelerate our mission to increase the number of adult smokers who switch from combustible cigarettes to JUUL devices.”
Fueled by its unique and innovative Silicon Valley approach to product development and founded by former smokers, JUUL has rapidly built an industry-leading position by satisfying adult tobacco consumers with its differentiated e-vapor products. JUUL has quickly grown both revenue and share and today represents approximately 30 percent of the total U.S. e-vapor category. JUUL has a deep innovation pipeline and currently operates in eight countries, with rapid international expansion plans.
In addition to Hovey and del Calvo, the Pillsbury team included:
Executive Compensation & Benefits
Insolvency & Restructuring
Antitrust & Competition