Imperial Brands, the global tobacco and nicotine business, today announces the acquisition of a range of nicotine pouches from TJP Labs in order to facilitate its entry into the US modern oral market.

The transaction will enable ITG Brands, Imperial’s US operation, to offer legal adult American consumers a diverse range of 14 product variants in a pouch which performs strongly in consumer testing.

Following further consumer testing, ITG Brands will relaunch this range in 2024 under a new brand, which will be supported by the company’s existing US sales force.

TJP Labs, a Canada-based manufacturer, will continue to manufacture the oral nicotine pouches under contract for ITG Brands.

Stefan Bomhard, Group CEO of Imperial Brands, said: “Today’s transaction is aligned to our focused, challenger approach in next generation products and to our disciplined capital allocation framework.

“While it will take time to build our presence in this category, the proposition we are acquiring is clearly differentiated within the US market and has tested strongly with consumers.”

Kim Reed, President and CEO of ITG Brands, said: “This is an opportunity to expand our next generation product offerings in the US and to be able to offer our legal adult consumers a wider range of product options. We look forward to a long and successful partnership with TJP Labs.”

David Richmond-Peck, CEO of TJP Labs, said: “Imperial has extensive brand development, marketing and sales execution capabilities in the US and a long global track record of operating responsibly. We look forward to a strong and ongoing partnership.

“This transaction supports TJP Labs’ commitment to developing and producing products to promote global harm reduction, consumer choice and flexibility.”

The transaction – for an initial consideration of £65 million, with an additional deferred sum based on sales volumes over five years – is consistent with Imperial’s capital allocation policy to invest in the business strategy through small bolt-on transactions. The company continues to be committed to an ongoing multi-year share buyback.

Imperial already markets modern oral products in selected European markets under the Zone X and Skruf brands.