British American Tobacco reinforces commitment to next generation products with two announcements

• A conditional agreement to acquire 100 percent of the CHIC Group: the market leading e-cigarette business in Poland
•  A vapour technology-sharing term sheet with R.J. Reynolds Tobacco Company

CHIC Group Agreement

British American Tobacco has signed a conditional agreement to acquire 100 percent of the CHIC Group. The CHIC Group has 800 points of sale in Poland, a dedicated e-liquids production facility, a modern research and development centre and leading Polish e-cigarette brands including VOLISH, P1, Provog, Cottien, LiQueen and Aromativ.

Commenting on the agreement, Managing Director of Next Generation Products (NGP) at British American Tobacco, Kingsley Wheaton said: “Acquiring the CHIC Group is strategically significant and makes commercial sense. It provides BAT with scale and market reach through Europe’s largest eCigarette retailing network, as well as important manufacturing and R&D capabilities. It further demonstrates our commitment to the NGP category."

The proposed acquisition is subject to approval from the Polish anti-trust authority, the Office of Competition and Consumer Protection (OCCP).

Technology-sharing term sheet with R.J. Reynolds Tobacco Company

British American Tobacco further announces today that it has signed a vapour products technology-sharing term sheet with R.J. Reynolds Tobacco Company (RJRTC), a subsidiary of Reynolds American Inc. (RAI).  The term sheet provides a framework for collaboration and mutual cross-licensing of the parties’ vapour product technologies up to 31 December 2022.

The collaboration also includes joint R&D activities and cooperation on regulatory, scientific and manufacturing issues relating to vapour products. 

Following further negotiations, both companies are expecting to conclude and sign a legally binding, definitive agreement by year-end 2015.

Wheaton concludes: “Today, we’ve announced two significant milestones to enhance our next generation product business globally, further enabling us to meet the demands of today’s consumer.”

ENDS