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E-cigarette maker inks $60M investment deal with conglomerate
An e-cigarette maker has signed an investment deal for up to $60 million with one of the largest distributors of tobacco products throughout the Middle East and Africa.
Electronic Cigarettes International Group in Spring Lake, or ECIG, formerly Victory Electronic Cigarettes Corporation, said today that Man FinCo Ltd., the investment arm of the Mansour Group, will provide up to $60 million of equity capital to ECIG, with $20 million invested initially and an additional option to invest $40 million at a later date.
ECIG is one of the largest e-cigarette companies in the world, and it has been rapidly expanding its distribution.
Brent Willis, chairman and CEO of ECIG, said the company had “carefully considered the Mansour Group as a strategic partner,” and the Mansour Group’s success in the Middle East and Africa in the tobacco industry influenced ECIG’s decision.
“We are very pleased to gain their endorsement of our strategy, their financial support to help execute it and their alignment with our team,” Willis said.
The Mansour Group is one of the largest companies in the Middle East and Africa, with businesses in a range of industries, such as automotive, heavy equipment, consumer goods, services and retail.
The Mansour Group is also one of the leading retailers and distributors in the region with Metro, the leading food retailer in Egypt, and AMIDC, one of the largest tobacco distributors in the Middle East and Africa.
Other interests of the Mansour Group include partnerships, licenses, franchises and ownerships across multiple business lines, including relationships with General Motors, Caterpillar and McDonald’s and other industry-leading companies.
“We are very excited to have made this strategic investment into ECIG,” said Mohamed Mansour, chairman, Mansour Group. “We have a long history in the tobacco business, building up leading international brands over the past 20 years.
“We are convinced that electronic cigarettes will be a very significant business and believe that ECIG will emerge as one of the global leaders.
“We know Mr. Willis’ track record in helping to create InBev and are confident that, together with our support, he will lead a similar effort in this category.”