June 15, 2021

Vaporjoes Daily Vaping Deals

The original vaping deals and steals blog.

SIZZLE: VAPORBEAST SELLS FOR 27 MILLION

In a time many companies are worried about the future – there is one that just sold for a nice chunk of change.  The reason I’m posting this is because it’s a bit personal.  I remember Vaporbeast since they started and I want to congratulate Tim Campbell – the founder.  We have done a ton of business together. A real success story.

Excerpt:

Turning Point Brands (TPB), owner of the Zig-Zag cigarette paper
brand, announced Thursday that it would be purchasing online vapor
product company VaporBeast for approximately $27 million.
The deal was signed with both companies agreeing to an immediate
acquisition with the big-ticket transaction expected to close before the
end of the year.


VaporBeast is a leading e-commerce platform and retail distributor of
various vapor products including a wide variety of brand name hardware
and e-liquid that was launched five years ago by founder Tim Campbell.



Campbell’s decision to sell his company, which brought in a reported
$53.2 million of revenue during a 12-month period ending Sept. 30,
claimed that he’s excited at what lies ahead for VaporBeast and that
joining with TPB will allow VaporBeast to “continue to grow…amid the
evolving regulatory environment.”


“TPB’s regulatory expertise and nationally recognized sales force
offer unique elements of capability to ensure and promote our future
success,” Campbell said.


TPB operates in three segments: smokeless products, smoking products,
and new generation products, the latter being an appropriate category
for VaporBeast and the products it’s been known to offer to its huge
customer base and to more than 4,700 non-traditional retailers.
Aside from Zig-Zag cigarette papers, TPB also owns Red Cap pipe
tobacco, Stoker’s moist snuff and a number of chewing tobacco companies
including Beech-Nut, Durango and Trophy.
The large tobacco entity plans to introduce its own products to
VaporBeast’s customer base, while utilizing VaporBeast’s e-commerce
platform to distribute products not offered in traditional retail to a
portion of TPB customers.


“We have been investing in our sales distribution into the
fast-growing non-traditional retail channels and VaporBeast clearly
allows us to dramatically accelerate that effort with significantly less
resources,” said TPB president and CEO Larry Wexler.


The VaporBeast purchase was the second acquisition carried out by
TPB. The first was the purchase of four chewing tobacco brands and a
twist tobacco brand from Wind River Tobacco Company for approximately
$2.5 million.


“Both acquisitions highlight our strategy to buy attractive brands
and assets within a fragmented Other Tobacco Products (OTP) market on an
accretive basis,” Wexler said. “We intend to grow the value of these
assets by applying our OTP experience, best practices and core
competencies—including our national distribution infrastructure,
salesforce, brand experience, product development and regulatory
infrastructure.”

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