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SPRING LAKE, Mich. -- Victory Electronic Cigarettes Corp. moved its global market consolidation strategy forward with the closing of its acquisition of VAPESTICK.
In mid-December, Spring Lake-based Victory reached a definitive agreement to acquire VAPESTICK, one of the leading electronic cigarette companies in Europe, for $70 million through a combination of cash and stock.
Based in the United Kingdom, VAPESTICK was launched in 2010 by co-founders Michael Clapper and Michiel Carmel. The brand has garnered distribution in major Western European markets and major U.K. retailers including Tesco, WH Smith, Costco and Harrods of London.
"We are excited about the closing of the VAPESTICK acquisition, the first of a number of planned acquisitions worldwide," said Brent Willis, chairman and CEO of Victory. "The addition of the VAPESTICK organization to the team is a welcome addition. They are a very capable group with an outstanding leader in Michael Clapper, and the distribution platform that the team has developed will be an excellent springboard for further growth and expansion across Europe."
With this acquisition, Clapper will assume the expanding role of president international for Victory, while Carmel will assume broader operational responsibilities in the European Group.
"Everyone at VAPESTICK is delighted to be joining Victory, with its world-class management team, powerful financial structure and focused plans to consolidate the global electronic cigarette industry. The e-cig category is highly disruptive and is growing fast at the expense of the $720-billion tobacco category," Clapper said. "In taking this step with Victory, we are ensuring that we have first-mover advantage and the ability to capitalize on the vast number of opportunities now presenting themselves."
VAPESTICK is a founding board member of the European Electronic Cigarette Industry Trade Association (ECITA).