‘Quit smoking’ firm bought by tobacco giant

BRITISH American Tobacco has acquired Manchester-based CN Creative which makes an “electronic” cigarette that helps smokers to quit.

The cigarette manufacturing multi-national said its core business will remain in tobacco but the deal would provide its customers with a “safer alternative”.

The value of the deal was not disclosed but is understod to have been between £30m-£50m.

The company, which has its own research and development facilities, currently has several e-cigarette products on the market as well as new, e-cigarette technologies in the development pipeline.

Its main brand is Intellicig, but it is also developing Nicadex, a hand-held device that delivers purified nicotine to the user. The device is used in a similar way to a cigarette, but the vapour contains no smoke and none of the carbon monoxide, tar or other toxic impurities in cigarettes.

CN Creative’s founders Chris Lord and David Newns explained: “This is an exciting opportunity that allows us to accelerate the development and successful launch of our innovative and new e-cigarette technologies.”

Kingsley Wheaton, director of corporate and regulatory affairs at British American Tobacco, said: “Our core business is, and will remain in, tobacco but we’ve always made it clear that our goal is to provide those adult smokers who are seeking safer alternatives to cigarettes with a range of reduced-risk products that will meet their varying needs.

“And we believe the innovative e-cigarette technologies that CN Creative has been developing over the past few years will help us move closer to achieving this goal.”

In January the firm raised £2m through a first-round fundraising exercise led by venture capital firm Advent Life Sciences. It employs around 50 staff.

Addleshaw Goddard’s corporate team in Manchester advised the owners of CN Creative.