Japan Tobacco to buy U.S. e-cigarette maker Logic Technology

(Reuters) – Japan Tobacco said on Thursday it had agreed to buy Florida-based e-cigarette maker Logic Technology Development LLC as it aims to become a global leader in the nascent, but fast-growing, market.

Japan Tobacco will fund the acquisition with existing cash and loan facilities, and expects to complete the deal in the third quarter of this year following regulatory approval, it said.

It did not say how much it was paying for Logic Technology, founded in 2010. Japan Tobacco last year also bought UK-based Zandera Ltd, best known for its E-Lites brand of electronic cigarettes.

(Reporting by Chang-Ran Kim and Junko Fujita; Editing by Clarence Fernandez)

17 comments ↓

#1 Anonymous on 04.30.15 at 11:22 AM

Big Tobacco is all over it!

#2 pa retailer on 04.30.15 at 1:30 PM

Have a lot of old dusty logic product sitting in stores. Could see this happening.

#3 asd@asd.com on 04.30.15 at 8:58 PM

I can see why Logic would want to sell but I don’t see what JTI is buying…

#4 vapor vixen on 05.01.15 at 1:19 AM

asd -logic obviously cashing in before they see their demise – always felt they would get out – JTI obviously felt left out – who else could they buy of substance with NJOY imploding, Victory/Fin decimated, Mistic Haus has issues. The only option really should have been VMR. They actually have technology and worldwide distribution from what I have been told.

#5 vapor vixen on 05.01.15 at 1:19 AM

anonymous – did you ever think it would be any different

#6 asd@asd.com on 05.01.15 at 1:19 PM

This is the old tobacco paradigm of “acquire/buy share” and “grow it.”

The problem is that vapor share — with the rapidly swinging market — has heretofore been very different (and less valuable) than share in the cigarette market.

#7 OTP Kid on 05.01.15 at 3:37 PM

Good move for Logic – all signs point to this category being toast: taxation coming, big tobacco hogging space, vaping restrivtions, flood of cheap products, oh and something about the FDA I think!

#8 Bill on 05.03.15 at 7:45 AM

E-cig category is kind of like the vapor it produces. First it’s there then it’s gone. Lots of trial and interest but nobody sticks with it. Very small retention rate. Vaping seems to be the growth segment but once regulation sets in that may change. It’s early in the game so it’s tough to tell where this all ends up.

#9 vapor vixen on 05.03.15 at 1:31 PM

otp kid u are on target but this really is no surprise other than to all the folks that’s views are blurred by all their vapor clouds – there are those that saw this all coming which I’m sure you are in that group

#10 asd@asd.com on 05.03.15 at 2:44 PM

In fairness, JTI does not have the best brands and does not really have a great new products strategy when you compared it to PMI & BAT, and even to some extent Imperial.

#11 vapor vixen on 05.04.15 at 10:54 AM

asd – so true I mean Wave is not your leading low end product. I mean logic probably helps jti

#12 Charlie on 05.05.15 at 12:15 AM

Well it makes sense for Logic but JTI is not a player of significance so not sure of the real significance at retail.

#13 OTP Kid on 05.06.15 at 11:56 AM

I think one piece of this story is really how naive JTI has to be to buy this. No one in the industry believes Logic is number one or two in volume, maybe except Bonnie. JTI is buying an empty product line, weak field managment, and limited distribution which they cannot fix because JTI has a small sales force.

#14 kev on 05.06.15 at 7:29 PM

new to this blog – like the articles – seems like those who post have a great handle on the topics – I am puzzled though by why so many folks think bonnie understands what is going on – I mean it just doesn’t make sense – otp kid and Charlie you are right – this ain’t no perfect storm more like a pit of quicksand – all the articles I have seen are that senior mgmt. will stay on board at logic – who will be following up on all the product returns and calling on the retail accounts? just seems disastrous – I guess time will tell – any one understand the logic here?

#15 Tropicaldick on 05.07.15 at 2:31 PM

Otp kid is sour because republic screwed up Johnson creek so badly.

#16 Japan Tobacco to buy US e-cigarette maker Logic Technology Development - EJuice Supplier on 05.13.15 at 5:49 AM

[…] of the deal. Entered the e-cigaret market last year after acquiring UK-based E-Lites electronic cigarette maker Zandera Ltd. Founded in … Read more on […]

#17 kev on 05.17.15 at 12:31 AM

huh what’s that all about

Leave a Comment