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Capstone Partners Advises VaporBeast on its Acquisition by Turning Point Brands

January 2017

Orange County, CA – Capstone Partners LLC, a leading investment banking firm, announced that it has successfully advised Smoke Free Technologies dba VaporBeast on its acquisition by Turning Point Brands.  The deal closed at an implied enterprise value of $27.0 million.

VaporBeast is among the fastest growing e-commerce companies in the United States that focuses on sales, distribution and development of smoke free technology products.  Tim Campbell founded the company in 2012 after designing a two-sided electronic cigarette which he christened the “SWITCHBACK.”  Since then, the company has focused on developing and distributing an array of leading proprietary and third party vape products including accessories, devices, drip tips, e-liquids, rebuildables and tanks.

Turning Point Brands (TPB) is a publicly-traded company based in Louisville, Kentucky.  TPB is a leading provider of Other Tobacco Products such as chewing tobacco, pipe tobacco, cigarette papers and electronic cigarettes.  Moving forward, TPB intends to leverage growth by using its larges sales organization to introduce its products into the VaporBeast customer base, utilizing their e-commerce platform and penetrating non-traditional retail stores.  VaporBeast will also continue to operate out of its Carlsbad, California headquarters.    

“It’s great to see Wall Street investing in the future of the Vape Industry,” said VaporBeast Founder Campbell.  “This merger gives VaporBeast and its customers the opportunity to not only survive, but to thrive during and after the deeming process.”  According to Campbell, VaporBeast will benefit not only from TPB’s regulatory expertise, but also from its nationally recognized sales force.

“It is very rewarding to see a founder like Tim Campbell, who built a very successful company and industry leader, realize a meaningful liquidity event for himself and his family,” commented Capstone Managing Director David Bench. 

Managing Director Ted Polk added: “the team at VaporBeast has done a tremendous job growing its e-commerce platform over the past few years and, when coupled with the resources of Turning Point, is well positioned for further growth in this dynamic marketplace.”  

 

Lead Professional

Theodore Polk

Managing Director
312-674-4531