LOUISVILLE, Ky.--(BUSINESS WIRE)--
Turning Point Brands, Inc. (NYSE: TPB), a leading provider of Other
Tobacco Products (“OTP”), today announced that it has acquired related
assets of Vapor Supply, VaporSupply.com and some of its affiliates.
Vapor Supply is a leading B2B e-commerce marketing and distribution
platform servicing vapor stores. Additionally, the company manufactures
and markets proprietary e-liquids under the DripCo brand and operates
eight company-owned stores in the Oklahoma market area. Included in the
assets is the eCig.com domain, which will be used to educate consumers
on the growing dynamics of the electronic cigarette space.
For the year ending December 31, 2017, Vapor Supply had revenue of
approximately $33 million and gross profit of $6 million. After
rationalization of inventory, TPB expects an annual sales rate of
approximately $25-$28 million. The transaction will be funded with cash
on hand and is immediately earnings accretive. TPB will update the 2018
outlook with its first quarter earnings release on May 9, 2018.
“We are delighted to welcome Vapor Supply to the Turning Point Brands
family,” said Larry Wexler, President and CEO. “Vapor Supply has swiftly
built a compelling business model, including a powerful B2B marketing
platform that ships to over 1,400 U.S. retail vapor stores and an
efficient e-liquid manufacturing facility for its proprietary products.
Given our now well established NewGen distribution engine via the
VaporBeast and Vapor Shark businesses, we intend to release operational
and financial synergies through thoughtful integration and a transfer of
best-in-class business practices.”
“Given our existing NewGen infrastructure, we are confident we can
increase operating contribution over the next eighteen months through a
variety of actions including improved purchasing power, broadened
product selection, accelerated sales growth and business process
optimization,” said Graham Purdy, President, New Ventures. “This
acquisition further demonstrates TPB’s continued commitment to the
vaping segment. As a founding member of the Vapor Technology
Association, TPB takes seriously the fight to protect this burgeoning
industry for the many adult consumers and small businesses who depend on
using and selling these products. TPB’s continued investment in our
growing NewGen segment provides our wholesale and retail customers with
a strong, reliable partner to help navigate this rapidly changing
marketplace in the face of a shifting regulatory regime.”
About Turning Point Brands, Inc.
Louisville, Kentucky-based Turning Point Brands, Inc. (NYSE: TPB) is a
leading U.S. provider of Other Tobacco Products. TPB, through its three
focus brands, Stoker’s® in Smokeless products, Zig-Zag®
in Smoking products and the VaporBeast® distribution engine
in NewGen products, generates solid cash flow which it uses to finance
acquisitions, increase brand support and strengthen its capital
structure. TPB does not sell cigarettes. More information about the
company is available at its corporate website, www.turningpointbrands.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180430006218/en/
Turning Point Brands, Inc.
Robert Lavan, CFO
502-774-9238
ir@tpbi.com
Source: Turning Point Brands, Inc.