Lorillard made its debut into the electronic cigarette industry just over a year ago when they purchased leading U.S. electronic cigarette company Blu Cigs.
Since then, Lorillard continued to sore with profits on the newly acquired Blu and the tobacco giants funding allowed them to once again sink their teeth a little deeper into the niche market by purchasing U.K. e-cig company SKYCIG.
Lorillard had to shell out $135 million to acquire Blu Cigs – So, this purchase should feel a bit more settling at only $49 million U.S. dollars. The actual deal was 30 million pounds (about $49 million U.S.) upfront, plus another 30 million pounds if the company meets certain financial goals.
Like Blu Cigs being the leading e-cigarette company in the U.S., SKYCIG is one of the leading e-cig companies in Britain.
This leads one to wonder, is this the end of Lorillard’s goal? To purchase a couple leading brands or are they just getting started? – Can we expect them to try to dominate this market as they do with the tobacco market?
What do you think? You comments are welcome.