E-cigarette firm acquired in £30m deal

MANCHESTER electronic cigarettes firm VIP has been bought in a £30m cash and shares deal.

Shareholders Miguel Corral and David and Melanie Levin, who set up the business just five years ago, have sold to US-based Victory Electronic Cigarettes Corporation.

A similar value was given to CN Creative, another Manchester-based e-cigarette firm, when it was acquired by British American Tobacco two years ago.

In a statement stock market-listed Victory described VIP as “one of the most profitable and well-run electronic cigarette companies across Europe, with a leading presence in the England and a number one market position in Ireland”.

It has its own retail stores and mobile kiosk units as well as an online operation.

Mr Corral said: “Everyone at VIP is extremely excited about joining Victory and becoming a driving force behind the largest independent electronic cigarette company in the world. We knew that to effectively compete in the next phase of this industry that we would need to partner with someone that shared our same vision and would facilitate us to achieve our long-term objectives. We chose Victory because they have the people, the resources, and infrastructure that when combined with our team, will enable us to accomplish our vision – now just on a global basis, and now much faster.”

Victory’s chief executive Brent Willis said: “VIP is a high potential franchise with an outstanding leadership team that will each be taking on broader global roles in the combined enterprise. Of all the electronic cigarette companies, VIP was the most profitable company as a percentage of sales of any ecig firm we have seen worldwide. Their product portfolio, premium brand, and distribution approaches have global potential and we intend to heavily invest in expanding their distribution model and product portfolio.”

The corporate finance team at the Manchester office of accountancy firm Mazars advised VIP on the deal, along with law firm Hill Dickinson.

Corporate finance director Dave Hilton said: “It has been great working with the shareholders of VIP in helping them to achieve the right value and the right home for the business to deliver their future growth strategy.”