Turning Point Tobacco Buys VaporBeast Online Vape Retailer.

[MMW]

Well-known online vape company purcased for $27 million - Vaping360

A well-regarded online vaping retailer and wholesaler has been bought by a tobacco company. VaporBeast, which has been selling vapor products online for five years, has been acquired by Turning Point Brands for $27 million in cash and other considerations.

vaporbeast had net income of $6.4 million over the last year, according to a press release. The Carlsbad, CA-based company has 48 employees. Known by vapers as a trustworthy online retail outlet, the company also has a thriving wholesale business, serving over 4,700 retail stores, primarily vape shops. The company will remain in California, according to founder Tim Campbell.

Turning Point Brands is a publicly traded company (NYSE: TPB) based in Louisville, KY. Some of their brands include Zig-Zag, Beech-Nut, Stoker’s, Trophy, Havana Blossom, Durango, Our Pride, Red Cap, Primal, and V2Cigs. They make and sell smokeless and combustible tobacco products, and non-tobacco nicotine and non-nicotine products including e-cigs and shisha products.

Turning Point’s strategy will include selling some of their other products through VaporBeast’s website, and using VaporBeast’s distribution platform to get vapor products into traditional retail outlets like convenience stores.

 

[MMW]

What caught my eye is they claim to make and sell non-tobacco nicotine.
Also, they plan on continuing to sell vapor product along with their tobacco line.

 

[Eskie]

Interesting. Guess they wanted a line into the wholesale business to push V2. As to using VaporBeast to get into convenience stores seems odd as VB mostly services vape shops, not convenience stores. Price is a sorta low multiple for $6.4 million dollars in income. I'm sure there will be more such transactions over the next 2 years.

What caught my eye is they claim to make and sell non-tobacco nicotine.
Also, they plan on continuing to sell vapor product along with their tobacco line.

Eh, that's a point of confusion. Hard to see how they're going to get V2 classified as a non-tobacco product under current regs. If they just spent $27 million thinking they're going to do an end run around the FDA by using a synthesized nicotine instead of extraction from tobacco, well, that's quite a bet.

 

[MMW]

What also caught my eye is they spelled Purchased wriong.

 

[MMW]

See what I did there?

 

[Eskie]

What also caught my eye is they spelled Purchased wriong.

I had to look up what shisha products were. Who knew?

 

[Larry J]

See what I did there?

Yes, @MMW, I saw what you did right away. I do a lot of proofreading in my job. Thought it was a dumb mistake until I saw your second post! Thanks for giving me a "chukkle."

 

[Str8vision]

Doesn't surprise me in the least, may end up being the future of vaping. I'm not overly concerned with the on-line retailers, it's the Juice manufacturers that I'm watching closely. Even those we in the vaping community consider "major" brands are in reality small businesses. Personally, I don't see how they could beg, borrow or steal the countless millions required for FDA applications/compliance. Will large corporations step in and buy them out or will many cherished brands simply disappear by the end of 2018 like several have already hinted they'll do. In any case I don't think VaporBeast will be the last change in ownership we see. Who knows perhaps under the tutelage of big tobacco we'll see companies like Zig Zag develop their own line of juice, they're already selling a $99 Zig Zag brand e-cig....