Vector Group Stock Rises After Cigarette Holding Company Acquired for $2.4B
- August 22, 2024
Key Takeaways
- Cigarette holding company Vector Group agreed to be acquired by Japan’s JT Group in a $2.4 billion deal.
- The price to be paid in cash represents a 7% premium to Vector’s closing stock price Tuesday.
- JT Group has international rights to the Camel and Winston cigarette brands.
Shares of cigarette holding company Vector Group ( VGR ) surged in intraday trading Wednesday after it agreed to be acquired by Tokyo-based JT Group, which has international rights to the Camel and Winston brands.
JT Group will pay $15 per share in cash—or about $2.4 billion in total equity value—for Vector, which represents a 7% premium to the company’s closing price Tuesday.
The deal is expected to close in the fourth quarter of 2024 and would see Vector Group become a wholly owned subsidiary of JT Group.
Vector CEO: Deal Provides ‘Outstanding Value Proposition’ in US Market
“Vector Group and JT Group share a commitment to quality and excellence and providing consumers an outstanding value proposition in the U.S. cigarette market,” Vector Chief Executive Officer (CEO) Howard Lorber said.
Shares of Vector advanced 8% to $15.12 as of 1:45 p.m. ET Wednesday. They have added more than a third of their value year-to-date.