Turning Point Brands Acquires Unitabac Cigar Portfolio
July 26 2021 - 9:14AM
Business Wire
Strategic Acquisition Includes Leading
Products Targeting U.S. Cigar Industry’s Largest and
Fastest-Growing Segments
Turning Point Brands, Inc. (“TPB” or the “Company”) (NYSE: TPB),
a manufacturer, marketer and distributor of branded consumer
products, including alternative smoking accessories and consumables
with active ingredients, announced today that the Company has
acquired certain cigar assets of Unitabac, LLC (“Unitabac”). The
acquisition is comprised of a robust portfolio of cigarillo
products and all related intellectual property, including Cigarillo
Non-Tip (NT) Homogenized Tobacco Leaf (HTL), Rolled Leaf and
Natural Leaf Cigarillo Products. Terms of the transaction were not
disclosed.
The acquired brands compete in three core segments: Trivo, Hype
and Hi-Fi within the Cigarillo NT HTL segment; Cloud9 within the
Natural Leaf Cigarillo segment; and Badlands within the Rolled Leaf
segment. These cigars are all Grandfathered Products or subject of
Substantial Equivalence Reports in place with the U.S. Food and
Drug Administration (FDA).
“We are incredibly excited to welcome the Unitabac cigar brands
to the Turning Point Brands family,” said Larry Wexler, CEO,
Turning Point Brands. “Industry analysts have highlighted that the
multibillion-dollar cigarillo market growth is being fueled, in
part, by the rapidly expanding movement toward cannabis
legalization. Gaining access to Unitabac’s product portfolio
provides us with necessary assets to build a more competitive
platform to participate in this large and growing market. Our
intention is to leverage both the Zig-Zag tobacco brand strength
and the extensive reach of our retail distribution platform to
further penetrate the cigar category by introducing new line
extensions under the Zig-Zag tobacco brand and expanding the reach
of the Unitabac cigar products.”
“Turning Point Brands’ deep knowledge of the evolving consumer
experience, coupled with the Company’s sales and marketing
leadership, make the team an ideal partner for Unitabac,” added
Rush Patel, Founder, Unitabac. “With Turning Point Brands’
competitive advantages, grounded in superior marketing and
distribution reach, I am confident our portfolio of products and
brands developed over the past decade will continue to flourish
under its forward-looking stewardship.”
About Turning Point Brands
Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and
distributor of branded consumer products, including alternative
smoking accessories and consumables with active ingredients,
through its iconic core brands Zig-Zag® and Stoker’s® and its
emerging brands within the NewGen segment. TPB’s products are
available in more than 210,000 retail outlets in North America, in
addition to sites such as www.zigzag.com, www.nu-x.com and
www.solacevapor.com. For the latest news and information about TPB
and its brands, please visit www.turningpointbrands.com.
About Unitabac
Unitabac has offered a diverse portfolio of cigars and other
products to trade partners and adult consumers since 2010.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements may generally be identified by the use of words such as
"anticipate," "believe," "expect," "intend," "plan" and "will" or,
in each case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters
that are not historical facts. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. As a result, these statements are not guarantees of future
performance and actual events may differ materially from those
expressed in or suggested by the forward-looking statements. Any
forward-looking statement made by TPB in this press release, its
reports filed with the Securities and Exchange Commission (the
“SEC”) and other public statements made from time-to-time speak
only as of the date made. New risks and uncertainties come up from
time to time, and it is impossible for TPB to predict or identify
all such events or how they may affect it. TPB has no obligation,
and does not intend, to update any forward-looking statements after
the date hereof, except as required by federal securities laws.
Factors that could cause these differences include, but are not
limited to those included it the company’s Annual reports on Form
10-K, Quarterly Reports on Form 10-Q and other reports filed by the
Company with the SEC. These statements constitute the Company’s
cautionary statements under the Private Securities Litigation
Reform Act of 1995.
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Media Contacts
Turning Point Brands, Inc.: Caitlin Kasunich / Raquel
Cona KCSA Strategic Communications 212.896.1241 / 212.896.1204
ckasunich@kcsa.com / rcona@kcsa.com
Unitabac: For media inquiries and general information,
please contact: Rush Patel 973.210.3970 rpatel@unitabac.com
Investor Contacts
Turning Point Brands, Inc.: Louie Reformina, Senior Vice
President, CFO Turning Point Brands, Inc. 502.774.9238
ir@tpbi.com
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