Philip Morris International (PMI), a cigarette and tobacco manufacturing company, has agreed to acquire Vectura Group, a Chippenham, UK-based drug-delivery company, for an enterprise value of £852 million ($1.2 billion).

PMI reached an agreement with the board of Vectura Group on the terms of an all-cash, recommended offer to acquire Vectura. The agreement follows an earlier offer for Vectura in May (May 2021) from Murano Bidco Limited, indirectly controlled by funds managed by the Carlyle Group, an investment firm.

Vectura is a provider of inhaled drug-delivery services. Vectura has 13 key inhaled and 11 non-inhaled products marketed by partners with global royalty streams and a partnered portfolio of drugs in clinical development. In 2020, Vectura generated net revenues of £191 million ($254 million).

For PMI, the acquisition is part of the company’s “Beyond Nicotine” strategy, announced in February (February 2021), which set a goal to generate more than 50% of total net revenues (at least $1 billion) from smoke-free products by 2025. The proposed acquisition of Vectura seeks to leverage PMI expertise in inhalation and aerosolization into adjacent areas, including respiratory drug delivery and selfcare wellness.

PMI says it expects to close the transition in the second half of 2021, subject to a shareholder vote and approval by the appropriate regulatory authorities.

Source: Philip Morris International