Imperial Brands (LSE:IMB) has agreed to acquire Black Buffalo, a brand of tobacco‑alternative pouch products, in a deal starting at $150 million.
Additional payments will be linked to the performance of Black Buffalo over the coming three years, it added.
Black Buffalo, founded in 2015, produces tobacco‑alternative long cut and pouch products manufactured in North Carolina from US‑grown barn‑cured leafy greens with pharmaceutical‑grade nicotine and food‑grade flavour.
The products are positioned to replicate the taste and ritual of traditional moist smokeless tobacco, and it is expected to complement Imperial's Zone nicotine pouch range.
"This acquisition reflects our disciplined and focused approach to building a stronger next generation product portfolio in markets where we see attractive long-term growth opportunities," said Lukas Paravicini, Imperial Brands Chief Executive.
Imperial said the deal is consistent with its capital allocation policy to pursue bolt‑on transactions and that it remains committed to an ongoing multi‑year share buyback program.
The Black Buffalo team will join Imperial and the business becomes part of Imperial's portfolio effective immediately, with the group planning to deploy its US commercial infrastructure and retail relationships to accelerate long‑term growth.
