Philip Morris, one of the world’s largest tobacco companies, has reached an agreement in principle to acquire the nicotine gum manufacturer Fertin Pharma.
The Danish company Fertin Pharma is one of the leading developers and manufacturers of nicotine products (chewing gums, tablets, powders) used in smoking cessation programs. The company is owned by the private investment fund EQT, as well as by the Bagger-Sorensen family, which founded Fertin over a century ago.
Philip Morris will buy a 70% stake from the investment fund for 5.1 billion Danish kroner ($ 813.1 million), after which Fertin will become its subsidiary. The deal will be paid for in cash, with the parties hoping to close it in the fourth quarter of this year.
Philip Morris has invested over $ 8.1 billion in the development of smoke-free products in recent years. By 2025, the company plans to generate more than 50% of its revenues from these products and at least $ 1 billion from nicotine-free products.