:max_bytes(150000):strip_icc()/GettyImages-1241667953-f13ab4e58e364edb967e331a99fa390e.jpg?w=780&resize=780,470&ssl=1 "Vector Group Stock Rises After Cigarette Holding Company Acquired for .4B")
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.
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