JTI to Acquire Ploom Product Line
SAN FRANCISCO — JTI and Ploom Inc. reached an agreement that adds to JTI's product offerings.
Under the pact, JTI will acquire Ploom's modelTwo and pods product line — including the "Ploom" trademark — and general intellectual property related to modelTwo and pods. Concurrent with the transaction, Ploom will buy back JTI's minority stake in order to focus on its successful PAX business and an expanding product portfolio.
Ploom's new corporate name will be PAX Labs Inc. PAX is an open-system vaporizer that heats loose-leaf tobacco. It is currently available in the United States and Canada.
"This partnership has afforded both parties many mutual benefits, and we are proud of our success with the pods product line," said James Monsees, PAX Labs founder and CEO. "Both companies will profit from this fresh approach. Operating as PAX Labs, our focus on vaporization delivery products will fuel continued growth, especially as we enter new market segments. In addition to PAX, our industry-leading, loose-leaf vaporization product, we anticipate rapid rollouts of new products and further expansion into international markets."
This acquisition is part of JTI's drive to further develop the tobacco vapor category and its overall mission to be the leader in next-generation products.
"This agreement is a natural evolution of our fruitful partnership and enables both companies to concentrate independently on their areas of expertise," said Masamichi Terabatake, JTI's deputy CEO and executive vice president for Emerging Products and Corporate Strategy. "With our manufacturing and tobacco know-how, JTI has facilitated the development of the innovative Ploom tobacco vapor pods2 and this is an important element in the continuous expansion of our next-generation products portfolio."
Financial details of the transaction were not released. The transaction is expected to close during the first quarter of 2015.