The Richmond, Va.-based owner of Philip Morris USA announced that the transaction is expected to close in the second quarter.
The deal with Altria’s Nu Mark subsidiary also includes up to $20 million in incentive payments. Altria began test marketing its own electronic cigarette under the MarkTen brand in August.
Altria noted that Green Smoke’s experience in the category, along with its supply chain, products and customer service, will complement its business.
Green Smoke was founded in 2008 and has operations in the U.S. and Israel. Its revenue in 2013 was about $40 million.