TOKYO, April 30, 2015 /PRNewswire/ -- Japan Tobacco
Inc. (JT) (TSE: 2914) announced today that it entered into an
agreement to acquire Logic Technology Development LLC ("Logic"),
one of the leading US e-cigarette brands. Founded in 2010,
Logic sells a full range of high quality rechargeable, ready-to-use
and disposable e-cigarettes, including the Logic Pro tank
system[1], newly launched in April
2015.
"With the Logic brand and its strong portfolio of products, the
JT Group has a sizeable participation in the largest and
fast-growing US e-cigarette market," commented Masamichi
Terabatake, JTI's (Japan Tobacco International) Executive Vice
President and Deputy CEO. "Logic's well established presence in the
US, in addition to our acquisition of E-Lites in the UK, further
underpins our global ambitions to become the leader in emerging
products."
The executive management team of Logic will remain with the JT
Group post-acquisition in order to benefit from their extensive
knowledge and experience of the US e-cigarette market.
"With the backing of JT Group's global resources, we believe
Logic is uniquely positioned to accelerate its growth in the US
market and further enhance its product offering," said Eli Alelov,
Logic's co-founder and CEO.
"We are excited about the transaction and look forward to the
next phase of Logic`s development with the JT Group," added
Howard Panes, Logic`s
co-founder.
The transaction will be funded by the Group's existing cash and
loan facilities, with an expected minor effect on the Group's
consolidated performance for the fiscal year 2015. JT expects
to complete the acquisition in the third quarter of the fiscal year
2015 following regulatory clearance.
BACKGROUND INFORMATION
Logic Technology Development LLC
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Established:
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2010
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Headquarters:
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Pompano Beach,
Florida, USA
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|
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Representatives:
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Eli Alelov, Howard
Panes
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Shareholding:
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Private,
founders
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Business
description:
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Sales of electronic
cigarettes through retails and online channels mainly in the
USA.
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#3 brand in terms of
share of value (Nielsen, March 2015)
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Brand
Portfolio:
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Logic brand of
rechargeable ready-to-use, disposal, and tank systems, with starter
kit and refills in 2 flavor variants, and accessories
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|
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Company's
websites:
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www.logicecig.com
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Japan Tobacco Inc. is a leading international tobacco
company. Its products are sold in over 120 countries and its
internationally recognized brands include Winston, Camel, Mevius
and LD. With diversified operations, JT is also actively present in
pharmaceuticals and processed foods. The company's revenue was
¥2.154 trillion (US$17,867
million(*)) in the fiscal year ended December 31, 2014(**).
*Translated at the rate of ¥120.55 per $1, as of December 31,
2014
**Due to a change in the accounting period from March 31 to December 31, the fiscal year 2014
covered nine months for Japanese domestic businesses and 12 months
for the consolidated subsidiaries which operate the Group's
international tobacco business. On a comparable full calendar year
basis, revenue was ¥2.433 trillion (US$20,186 million(*).
About LOGIC Technology
LOGIC is the leader in premium electronic cigarettes,
offering an alternative option to smoking tobacco products. With
multiple industry leading patents, LOGIC sets itself apart by
featuring revolutionary technology that delivers a realistic
smoking experience. For more information, please visit
www.logicecig.com, twitter.com/logicecig
and facebook.com/LogicECigarette.
[1] Commonly referred to as tanks, these are larger devices
which do not attempt to look like tobacco cigarettes. They have
larger batteries with higher capacity and typically a larger
e-liquid reservoir.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/jt-acquires-logic-the-leading-independent-us-e-cigarette-company-300075013.html
SOURCE Japan Tabacco