Lorillard Buys British E-Cigarette Maker SKYCIG - Quick Facts

(RTTNews) - Cigarettes manufacturer Lorillard Inc. (LO) announced Tuesday that it has acquired SKYCIG, a British electronic cigarette business.

The acquisition is for approximately 30 million pounds in cash to be paid at closing, and additional contingent consideration of up to an additional 30 million pounds to be paid in 2016 based on the achievement of certain financial performance benchmarks.

The acquisition provides Lorillard with a global presence in the rapidly growing worldwide e-cigarette category, along with its U.S. electronic cigarette brand - blu eCigs.

It is expected that SKYCIG would benefit from Lorillard's significant sales, marketing, regulatory, research and development expertise to further strengthen its competitive position in the UK e-cigarette market.

Following the purchase, SKYCIG will operate as a separate operating subsidiary under Lorillard's ownership and it is Lorillard's intention to retain SKYCIG's current management team and its current business locations in Great Britain.

Murray Kessler, Lorillard Chairman, President and CEO, said, "We firmly believe that e-cigarettes may present the most significant harm reduction option ever made available to smokers in the U.S. and abroad and we look forward to working with regulators around the world to confirm this conclusion."