Well-Known Online Vape Company Acquired for $27 Million

This week, a significant acquisition came from an online vaping retailer. Is this a positive development for the vaping industry?

A well-regarded online vaping retailer and wholesaler has been acquired by a tobacco company. VaporBeast has been selling vapor products online for five years and has been acquired by tobacco product manufacturer Turning Point Brands for $27 million in cash and other conditions.

VaporBeast reported a net income of $6.4 million last year. This California-based company in Carlsbad has 48 employees and is considered a trusted online retail store by vaping enthusiasts. The company's wholesale business is also thriving, serving over 4,700 retail stores (mainly vape shops). The company will continue to develop in California, according to founder Tim Campbell.

Turning Point Brands is a publicly traded company based in Louisville, Kentucky (NYSE: TPB). Some of their brands include Zig-Zag, Beech-Nut, Stoker’s, Trophy, Havana Blossom, Durango, Our Pride, Red Cap, Primal, and V2Cigs. They manufacture and sell smokeless and combustible tobacco products, as well as non-tobacco nicotine and nicotine-free products, including e-cigarettes and hookah products.

Turning Point Brands' strategy includes selling some of their other products through VaporBeast's website and leveraging VaporBeast's distribution platform to bring vapor products into traditional retail outlets like convenience stores.

Give it a chance

Some vaping enthusiasts may quickly think that VaporBeast has "sold out" to a tobacco company, but those people should also consider the benefits this move could bring. First, a respected online vaping seller will continue to remain in the industry. Moreover, the combination of Turning Point Brands' strength in convenience stores and VaporBeast's distribution capabilities will allow quality independent e-cigarette devices and e-liquids to reach more vaping enthusiasts.

Yes, Turning Point Brands is a tobacco company, but they are not a "big tobacco" company, and they do not sell cigarettes. If this move can help those who would never visit vape shops to find ways to quit smoking, isn't that a good thing? Isn't this helping smokers as we hope?

Facing the future after presumed regulations, it is much more difficult without a larger organization providing support. This merger may give VaporBeast a chance to survive and even thrive during and after the implementation of regulatory rules. Looking forward to seeing other medium and large vaping companies propose similar deals.