Philip Morris International (PMI), the maker of Marlboro cigarettes, has sold UK inhaler company Vectura Group for £150 million ($198 million) following what it calls an “unwarranted” backlash. This sale comes just three years after PMI acquired Vectura for over £1 billion.
The initial purchase faced criticism for being hypocritical, as Vectura produces inhalers for lung conditions such as asthma. PMI defended the acquisition as part of its strategy to pivot away from traditional cigarettes towards “smoke-free” alternatives like vaping.
On Wednesday, PMI announced the sale to electronics firm Molex Asia Holdings, stating that it relieves Vectura “from the unreasonable burden of external constraints and criticism related to our ownership.” The deal, pending regulatory approval, includes an upfront payment of £150 million and potential deferred payments of up to £148 million based on certain conditions.
PMI’s CEO Jacek Olczak emphasized the company’s ongoing commitment to innovation in the inhaler sector, indicating that it hasn’t completely exited this market. The Vectura acquisition aligned with PMI’s goal of achieving two-thirds of its sales from non-cigarette products by 2030.
Despite this commitment, health charities remain skeptical about PMI’s sincerity, given that over 60% of its $9.47 billion (£7.19 billion) sales during the last quarter came from cigarettes. PMI currently holds 23.6% of the global cigarette market by revenue.
The announcement comes as the new Labour government considers implementing an outdoor smoking ban at pubs, a move welcomed by health experts but causing concern among pub owners regarding its potential impact on their businesses.
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