Altria Group Inc. buys stake in Cronos Group Inc.

CANADA - Altria Group Inc. of the US definitively agreed to acquire 44.996% stake, or 146. 2 mil newly issued common shares, in Cronos Group Inc., a Toronto-based manufacturer and wholesaler of cannabis products, for CAD 16.25 (USD 12.147) in cash per share, or a total value of CAD 2.376 bil (USD 1.776 bil) in cash, in a privately negotiated transaction.

Date Announced: 07/12/2018
Deal Status (as of publication date): Pending

Deal Value (US mil): $1,775.86

TARGET ADVISORS*
Sullivan & Cromwell LLP (Legal Advisor)
Blake, Cassels & Graydon LLP (Legal Advisor)
Davies Ward Phillips & Vineberg LLP (Legal Advisor)

ACQUIRER ADVISORS*
Perella Weinberg Partners LP (Financial Advisor)
JP Morgan (Financial Advisor)
Wachtell, Lipton, Rosen & Katz (Legal Advisor)
Goodmans LLP (Legal Advisor)
Hunton Andrews Kurth LLP (Legal Advisor)

Cronos Group Inc, located in Toronto, Ontario, manufactures and wholesales medical cannabis products. It has operations across Canada, particularly in Simcoe County, Ontario and Okanagan Valley, British Columbia. It wholly owns and operates two licensed producers such as Peace Naturals, a company licensed to produce and sell medical marijuana and cultivate cannabis oil and Original BC Ltd, a company licensed to cultivate and sell medical marijuana products. It also has a partial ownership in Whistler Medical Marijuana Corp, a company also licensed to produce and sell marijuana products and cultivate cannabis oil. The company was founded in August 2012.

Altria Group Inc, located in New York, New York, manufactures cigarettes; produces beer, meat products, butter, cheese products, creamers, ice cream and frozen desserts, barbecue sauces, jellies, mayonnaise, salad dressings, cereals, bakery products, confectionary products, vegetable oils, margarine and other shorteners, fruit juices, drink powders, coffee, macaroni and cheese, and other groceries. The company is a holding company for Philip Morris USA, Philip Morris International and Philip Morris Capital Corporation. The company was founded in 1919.

*List of advisors are those known at press time.

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