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Altria Buys 80% Stake In Non-Tobacco Oral Nicotine Pouch Company, on!

Altria Buys 80% Stake In Non-Tobacco Oral Nicotine Pouch Company, on!

Altria Group, Inc. (NYSE: MO) has entered into definitive agreements with the shareholders of Switzerland-based, Burger Söhne Holding AG to acquire 80-percent ownership of certain companies of the Burger Group that will commercialize “on!” products globally.

Altria will invest $372 million for the stake. The deal is expected to be completed in the second half of 2019.

The on! products are an oral tobacco-derived nicotine pouch product.

“Through our companies and investments, we have access to the leading products and brands in the moist smokeless tobacco, e-vapor and heated tobacco categories," said Altria CEO Howard Willard in a press release. "This acquisition will add another non-combustible product to our portfolio in what we believe is a high-potential, rapidly-developing oral TDN products ( tobacco-derived nicotine) category."

Altria's stock closed Friday at $49.06 per share.

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