Altria is in talks to purchase “smokeless tobacco” company UST for more than $10 billion, $2+ billion above its current market cap of $8 billion. UST netted $520 million last year on revenue of $1.95 billion. The deal is expected to be finalised as early as Monday.
NYT: Altria Group is in advanced talks to buy UST, the maker of the popular Skoal and Copenhagen smokeless tobacco brands, for more than $10 billion, people with close knowledge of the negotiations said late Thursday. The terms could not be learned.
The acquisition, which is at a delicate state and could still fall apart, would be Altria’s first major purchase since the company split in March, spinning off Philip Morris International to become an independent company focused on the overseas tobacco business and giving the Altria name to Philip Morris USA.
People involved in the transaction were planning to work through the weekend to complete the deal as soon as Monday, these people said, but they suggested that the release of the news could speed up the process.
Business Insider Emails & Alerts
Site highlights each day to your inbox.