Imperial Brands share price: Group said to have acquired vaping liquids maker

Imperial Brands (LON:IMB) has acquired a UK-based manufacturer of e-cigarette liquids, Bloomberg has reported. The deal comes as tobacco manufacturers seek alternatives to smoking.

Imperial Brands’ share price has advanced in London in today’s session, having added 0.81 percent to 3,095.50p as of 12:55 BST, outperforming the benchmark FTSE 100 index which currently stands 0.21 percent higher at 7,508.81 points. The group’s shares have lost just under 21 percent of their value over the past year, and are down by some 12 percent in the year-to-date.

Nerudia deal

Sources with knowledge of the matter told Bloomberg today that Imperial had inked a deal to buy Liverpool-based Nerudia, which produces nicotine-infused liquids for use in vapor products and works with manufacturers to ensure products comply with regulatory standards in the European Union and the US.

The FTSE 100 group is expected to announce the acquisition alongside its full-year results next week.

The newswire notes that the Nerudia acquisition deepens Imperial’s commitment to the e-cigarette industry, with the company having opted against entering the fast-growing heated-tobacco market, instead ploughing its resources into e-cigarettes.

FTSE 100 peer British American Tobacco (LON:BATS) meanwhile recently signalled confidence in its next generation products, forecasting that the division, whose offerings include e-cigarettes, will generate £5 billion in revenue and ‘substantial profit’ by 2022.

Analysts on Imperial Brands

The 16 analysts offering 12-month price targets for Imperial Brands for the Financial Times have a median target of 3,850.00p on the shares, with a high estimate of 4,600.00p and a low estimate of 3,230.00p. As of October 27, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will outperform the market.  

Imperial Brands is scheduled to announce its preliminary results on November 7.