According to Tobacco Industry News, Turning Points Brands (TPB) has recently acquired the International Vapor Group (IVG).
TPB is a leader in other tobacco products, serving its growing retail electronic vape distribution channel through its B2B platform VaporBeast. The acquisition of IVG will add a top vape B2C platform to TPB products.
TPB is also a US stock listed company
IVG promotes and sells its own and third-party vape products to adult consumers through online platforms such as VaporFi, South Beach Smoke and DirectVapor. VaporFi operates companies and franchise retail stores, and consumers can get advice on buying knowledge from experienced employees. The company was founded in 2010 and is headquartered in Miami Lakes, Florida, USA.
The acquisition of IVG is worth $24 million, plus $4.5 million or an additional consideration. The acquisition consideration includes $15 million in cash, $5 million in TPB common stock, and $4 million in 18-month promissory notes.
Or the additional consideration is based on performance indicators that have not been paid for two years. During the 12-month period ended June 30, 2018, IVG’s revenue was approximately $47.7 million, and earnings before interest, tax, depreciation and amortization (EBITDA) were $4.9 million. TPB expects the transaction to add value immediately. As part of the acquisition, TPB will integrate underperforming overlapping channels, which will reduce the remaining TPB 2018 net sales by $5 million.
Molina will join the TPB management team as the president of IVG.