Altria’s $12.8 Billion Investment in JUUL

Wachtell, Lipton, Rosen & Katz, Cleary Gottlieb Steen & Hamilton and Pillsbury Winthrop Shaw Pittman advised on the deal

Altria’s investment represents a 35 percent economic interest, valuing JUUL at $38 billion. At closing, Altria received nonvoting common shares of JUUL. Upon antitrust clearance, these shares will automatically convert to voting shares possessing 35 percent of JUUL’s outstanding voting power, and Altria will be able to appoint directors representing one-third of JUUL’s board of directors. JUUL will remain fully independent.

In connection with its investment, Altria has agreed to provide JUUL with access to its infrastructure and services, with the goal of accelerating JUUL’s mission to switch adult smokers to e-vapor products.

JUUL is a technology company dedicated to eliminating cigarettes by offering existing adult smokers the first true alternative to combustible cigarettes. The company’s research shows that more than 1 million smokers have already switched to JUUL, and JUUL is working to enable millions more to switch in the coming years through technological innovations.

Wachtell, Lipton, Rosen & Katz advised Altria with a team led by Andrew J. Nussbaum (Picture) and Karessa L. Cain.

Cleary Gottlieb Steen & Hamilton advised JUUL with a team led by Victor I. Lewkow and Benet J. O’Reilly.

Pillsbury Winthrop Shaw Pittman advised JUUL with a team including Jorge A. del Calvo and Justin D. Hovey

Involved fees earner: Victor Lewkow – Cleary Gottlieb Steen & Hamilton; Benet O’Reilly – Cleary Gottlieb Steen & Hamilton; Karessa Cain – Wachtell, Lipton, Rosen & Katz; Andrew Nussbaum – Wachtell, Lipton, Rosen & Katz;

Law Firms: Cleary Gottlieb Steen & Hamilton; Wachtell, Lipton, Rosen & Katz;

Clients: Altria Group, Inc.; JUUL Labs, Inc.;