Lorillard (LO) Misses Q1 EPS Views; to Acquire blu ecigs

April 25, 2012 7:01 AM EDT Send to a Friend
Lorillard (NYSE: LO) reported Q1 EPS of $1.74, $0.25 worse than the analyst estimate of $1.99. Revenue for the quarter came in at $1.53 billion versus the consensus estimate of $1.2 billion.

Lorillard announced today that it has acquired all of the assets of blu ecigs, a U.S. electronic cigarette (e-cigarette) company for $135 million in cash. The acquisition provides Lorillard with the leading brand, offering the best consumer experience and unique social networking features, in the rapidly growing e-cigarette category.

blu ecigs is the best-selling e-cigarette brand, with the look and feel of traditional cigarettes – without the tobacco smoke, ash, or smell. blu ecigs is the market leader in providing innovative technology for an improved consumer experience that enhances the enjoyment and social aspect of e-cigarettes. blu ecigs will be a separate operating company of Lorillard and it is Lorillard's intention to retain blu ecigs' current management team and its headquarters in Charlotte, NC.

For earnings history and earnings-related data on Lorillard (LO) click here.


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Comments

Blu Acquisition
Mark Rames on 2012-04-30 19:00:36
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It was about time Big Tobacco got a piece of the electronic cigarette business instead of trying so hard to get them banned. It was long predicted this would be the next logical step for them, and Lorillard was the first to make a move.

blu cigs was definitely the right e-cigarette company to buy, as they are probably the most well-known brand in the business. I think in the end, us users will profit most from this move, but we'll just have to wait and see

Lorillard-Blu acquisition
Mike Morgan on 2012-04-26 12:02:32
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This is major news for the electronic cigarette and tobacco industries, so see http://ecigwerks.blogspot.com/2012/04/lorillard-and-blu-cigs-take-big.html for more.


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