e-cigarette firm E-Lites acquired by Benson & Hedges owner

BROMSGROVE-based e-cigarette firm E-Lites has been acquired by the owner of Benson & Hedges and Silk Cut, Japan Tobacco International, in an undisclosed deal.

JTI said it had reached an agreement to acquire the assets of Zandera Ltd, which is responsible for the E-Lites brand.

Zandera was co-founded by Adrian Everett in 2009 and has grown to a business employing 70 people. Its E-Lites brand of rechargeable e-cigarettes with starter kit and refills comes in three flavours, while there is an accompanying range of accessories.

Masamichi Terabatake, JTI’s Executive Vice President and Deputy CEO, said: “Our investment in Zandera provides the JT Group with an excellent entry-point into the fast growing e-cigarette category.

“With E-Lites’ well-established brand and product portfolio, we are able to offer adult consumers another important extension to our growing range of emerging and innovative products such as tobacco vapour pods.”

The executive management team of Zandera will remain with the JT Group post-acquisition so they can leverage their knowledge of the sector to the benefit of the parent group.

Everett, now Zandera’s CEO,  said: “With access to the JT Group’s global distribution muscle as well as their research & development expertise, proven commitment to quality assurance and vision for emerging products, we look forward to growing the business and further enhancing E-Lites’ product offering.”

The deal is being funded by JTI’s existing cash and loan facilities and is expected to have a minor effect on its consolidated performance and cash flows for the fiscal year 2014. JTI expects to complete the acquisition in the second quarter of the 2014 fiscal year following regulatory clearance.

The group’s other well-known brands include Winston, Camel and Mild Seven.