Vapor Beast was recently sold to Turning Point Brands for $27 Million. The company that purchased the popular vape brand is a leading tobacco products provider with brands like Stoker’s Zig-Zag, and Primal.
Although months late to this publication, it recently came to my attention that Vapor Beast was sold to a tobacco company. The news of the sell began around mid-November, and the acquisition was set to complete at the end of 2016. Vapor Beast is one of the most recognized online vape stores on the web, providing a solid track record of great customer service, always up-to-date products, and that’s earned them a pretty immense following. However, for the time first in its existence, the known brand could take on a downward spiral as new owners are getting settled in.
Vapor Beast, a leading e-commerce brand within the vaping industry has been sold to Turning Point Brands for $27 million. Turning Point Brands is a leading tobacco products provider with an extensive amount of brands under its umbrella, like the popular Zig-Zag brand (the rolling papers), Primal, Beech Nut, Stoker’s, Trophy, and more. Turning Point Brands also owns V2 Cigs, another large player in the electronic cigarette space.
To give you a bit more information on this company, Turning Point Brands is a publicly traded company that’s headquartered in Louisville, Kentucky. They manufacturer and sell both smokeless and combustible tobacco products, along with non-tobacco nicotine and non-nicotine products, such as ecigs and shisha. What Turning Point Brands plans to do is capitalize on Vapor Beast’s e-commerce website, by continuing to offer the latest vape products, plus selling some of their other products on the Vapor Beast website. That’s where the red flags come up.
For those that didn’t know, Vapor Beast is headquartered in Carlsbad, California, it has 48 employees, and has a large wholesale business, which serves 4,700 stores. To give you an idea of just how large Vapor Beast is, it had a revenue of $53.2 million. As for the purchase price of this sell, it was approximately $27 million, subject to a working capital adjustment. The purchase will be completed with $4 million in cash at closing, $19 million in short-term notes payable, plus $4 million in payments deferred for eighteen months.
Read more from the original source: Business Wire – Turning Point Brands to acquire VaporBeast, a leading e-commerce platform