November 1, 2019 / 12:03 PM / 7 months ago

Turning Point explores options for vaping distribution unit amid regulatory backlash

Nov 1 (Reuters) - Turning Point Brands said on Friday it would explore options for its vaping distribution business amid intense regulatory scrutiny on the fast-growing industry.

The company, which has market capitalization of about $400 million, said the expected future returns from business may no longer justify the required investment in it going forward.

E-cigarette makers have been facing intense backlash globally following reports of vaping-linked lung injuries that have killed 37 and sickened more than 1,000 people in the United States.

Tobacco giant Altria Inc on Thursday took a $4.5 billion hit from its investment in embattled e-cigarette maker Juul Labs Inc.

Turning Point Brands sells products including rolling papers, chewing tobacco and vapes and owns e-cigarette distributors such as VaporBeast, Vapor Shark and Vapor Supply bought through acquisitions.

"Vaping headlines dramatically disrupted our third-party vaping distribution business starting in mid-August," Chief Executive Officer Larry Wexler said in a statement.

Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below