Japan Tobacco acquires US e-cigarette company Logic Development Technology
LONDON (ShareCast) - Japan Tobacco (Other OTC: JAPAF - news) (JT) has entered into an agreement to acquire Logic Technology Development, a leading US e-cigarettes company. This announcement follows the group's acquisition of UK based Zandera , best known for its e-Lites brand of electronic cigarettes, in June 2014, and shows the Asian company's desire to enter into an emerging market.
"With the Logic brand and its strong portfolio of products, the JT Group has a sizeable participation in the largest and fast-growing US e-cigarette market," said JT International's Executive VP and Deputy CEO Masamichi Terabatake.
JT said the acquisition would be financed by a combination of cash and debt, and that they expected minor effect on the group's performance for the fiscal year 2015. No further details were disclosed.
"With the backing of JT Group's global resources, we believe Logic is uniquely positioned to accelerate its growth in the US market and further enhance its product offering." said Logic's co-founder and CEO Eli Alelov.
The acquisition is now subject to regulatory clearance and is expected to be completed in the third quarter of 2015.
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