ITG Brands announced that its parent company, Imperial Brands PLC, has acquired Black Buffalo, a modern oral products company, in a deal valued at an initial $150 million plus additional deferred payments tied to performance over three years and other criteria.
The acquisition strengthens ITG Brands’ position in the growing U.S. oral nicotine category by adding Black Buffalo’s tobacco alternative long cut and pouch products to its portfolio. Founded in 2015, Black Buffalo develops products for legal adult consumers of traditional moist smokeless tobacco, offering alternatives designed to replicate the taste, ritual, and experience of conventional products without using tobacco leaf or stem.
Black Buffalo utilizes a proprietary farm-to-can manufacturing process developed through years of research and development. Its products are manufactured in North Carolina using U.S.-grown barn-cured leafy greens combined with pharmaceutical-grade nicotine and food-grade flavorings. The company’s offerings complement ITG Brands’ existing zone nicotine pouch portfolio by targeting a different segment of adult consumers.
According to the companies, combining Black Buffalo’s brand and product portfolio with Imperial Brands’ commercial infrastructure, retail relationships, and sales capabilities is expected to expand consumer choice in the non-combustible oral products category while supporting future revenue growth.
As part of the transaction, Black Buffalo employees will join the Imperial Brands organization. The acquisition aligns with Imperial Brands’ strategy of expanding its next-generation product portfolio through targeted acquisitions while maintaining its ongoing capital allocation and share repurchase programs.
Imperial Brands was advised by Morgan Stanley & Co. International PLC, KPMG LLP, and White & Case LLP. Black Buffalo was advised by Goldman Sachs & Co LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP.
KEY QUOTES:
“The oral category continues to evolve rapidly, and this acquisition further strengthens our ability to compete and grow across differentiated segments. Black Buffalo broadens our oral portfolio beyond nicotine pouch offerings and expands the range of products we can offer legal adult consumers.
We look forward to deploying our best-in-class sales execution, retail relationships and nationwide commercial infrastructure to reach new Black Buffalo consumers and accelerate long-term growth.”
Kim Reed, President and Chief Executive Officer, ITG Brands
“This acquisition reflects our disciplined and focused approach to building a stronger next generation product portfolio in markets where we see attractive long-term growth opportunities. Black Buffalo is a strong, challenger brand with a highly differentiated proposition and complements our broader growth strategy.”
Lukas Paravicini, Chief Executive Officer, Imperial Brands
“Black Buffalo was built on innovation, deep consumer insights and a commitment to differentiated alternatives for adult consumers. We are excited about the opportunity with our new colleagues to combine our brand and product expertise with their scale, resources and commercial capabilities.”
Mark Hanson, Co-founder and President, Black Buffalo
