Daily Management Review

Top-selling cigarette brand owner to buy nicotine gum maker


Philip Morris, which owns the Marlboro cigarette brand, has agreed to buy nicotine gum maker Fertin Pharma for $813m. The deal should help one of the tobacco market's biggest players boost revenue from smoke-free products.

One of the largest tobacco companies in the world, Philip Morris International, has agreed to buy Danish manufacturer of nicotine gum and pills Fertin Pharma. It was announced by the company's press service.

According to the release, Philip Morris will buy Fertin Pharma from private equity fund EQT and holding company Bagger-Sørensen & Co for DKK5.1 billion (about $813 million). The transaction is expected to close in the fourth quarter of 2021. After that, the Danish company will become a subsidiary of Philip Morris.

The deal should help Philip Morris expand its portfolio of smokeless products, the company’s CEO said. Philip Morris previously announced plans to generate more than 50% of its revenue from smokeless products. Smoke-free products, the company believes, will " replace cigarettes one day ".

Philip Morris International is one of the biggest players in the global tobacco market. It owns brands such as L&M and Marlboro, the world's best-selling cigarette brand. The company also manufactures IQOS tobacco heating systems.

source: bloomberg.com