Vector Group Stock Climbs Following $2.4 Billion Acquisition by Tokyo-Based JT Group
Vector Group, a leading cigarette holding company, has agreed to be acquired by Japan's JT Group, known for its global rights to Camel and Winston brands.
Key Highlights
- Vector Group, a prominent cigarette holding company, has entered into a $2.4 billion acquisition agreement with Japan's JT Group.
- The acquisition price of $15 per share in cash reflects a 7% premium over Vector's closing stock price on Tuesday.
- JT Group holds international rights to renowned cigarette brands Camel and Winston.
Shares of Vector Group (VGR) surged significantly during intraday trading on Wednesday after the announcement of its acquisition by Tokyo-based JT Group, a company with global rights to the Camel and Winston cigarette brands.
JT Group will acquire Vector Group for $15 per share in cash, valuing the deal at approximately $2.4 billion in total equity. This offer represents a 7% premium compared to Vector's closing price on Tuesday.
The transaction is projected to finalize in the fourth quarter of 2024, after which Vector Group will operate as a wholly owned subsidiary of JT Group.
Vector CEO Highlights Exceptional Market Opportunity
Howard Lorber, CEO of Vector Group, emphasized, "Both Vector Group and JT Group are dedicated to delivering quality and excellence, offering consumers an exceptional value proposition in the U.S. cigarette market."
Following the acquisition news, Vector's shares rose by 8%, reaching $15.12 by 1:45 p.m. ET on Wednesday. The stock has gained over 33% in value since the beginning of the year.
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