JT Acquires Leading E-cigarette Brand E-Lites

GENEVA, June 11, 2014 /PRNewswire/ --

Japan Tobacco Inc. (JT) (TSE: 2914) announced today that it has concluded an agreement to acquire all outstanding shares of Zandera Ltd. ("Zandera"), a leader in e-cigarettes and best known for its E-Lites brand. Founded in 2009, Zandera sells the most recognized range of high quality rechargeable and ready-to-use e-cigarettes in the United Kingdom.

Logo: http://photos.prnewswire.com/prnh/20140611/690915

 "Our investment in Zandera provides the JT Group with an excellent entry-point into the fast-growing e-cigarette category," commented Masamichi Terabatake, JTI's (Japan Tobacco International) Executive Vice President and Deputy CEO. "With E-Lites' well-established brand and product portfolio, we are able to offer adult consumers another important extension to our growing range of emerging and innovative products such as tobacco vapor pods (Ploom)."

The executive management team of Zandera will remain with the JT Group post-acquisition in order to leverage upon their extensive knowledge and experience of the e-cigarette industry, their understanding of the product, technology and regulatory landscape.

"With access to the JT Group's global distribution muscle as well as their research & development expertise, proven commitment to quality assurance and vision for emerging products, we look forward to growing the business and further enhancing E-Lites' product offering," said Adrian Everett, Zandera's co-founder and CEO.

This transaction will be funded by the Group's existing cash and loan facilities and is expected to have a minor effect on the Group's consolidated performance and cash flows for the fiscal year 2014.  JT expects to complete the acquisition in the second quarter of the fiscal year 2014 following regulatory clearance.

BACKGROUND INFORMATION

Zandera Ltd. 

    Established:               2009

    Headquarters:              Bromsgrove, Worcestershire, United
                               Kingdom

    Representative:            Adrian Everett

    Shareholding:              Private, founders

    Number of Employees:       Approximately 70 as of June 2014

    Business description:      Sales of electronic cigarettes through
                               retails and online channels
                                              

    Brand Portfolio:           E-Lites brand of rechargeable
                               ecigarettes with starter kit and
                               refills in 3 flavor variants, and
                               accessories

   Company's websites:         http://www.e-lites.co.uk
              

Japan Tobacco Inc. is a leading international tobacco product company. Its
products are sold in over 120 countries and its internationally recognized
brands include Winston, Camel, Mevius and Benson & Hedges. With diversified
operations, JT is also actively present in pharmaceuticals, beverages and
processed foods. The company's revenue was ¥2.399 trillion
(US$23,318 million(*)) in the fiscal year ended March 31, 2014.

*Translated at the rate of ¥102.92 per $1, as of March
31, 2014



Contact:     Ryohei Sugata, General Manager
Media and Investor
Relations Division
Japan Tobacco Inc. Tokyo: +81-3-5572-4292
E-mail:
[email protected]

Guy Côté, Vice-President
Media
Relations
JTI, Geneva: +41-22-703 0291
E-mail:
[email protected]

SOURCE JTI SA