Summary
Lately Altria has been on an acquisition spree, after acquiring a $1.8b stake in Cronos they're now looking to acquire $13.3b of Juul.
Even though their existing financial position is very strong, these acquisitions are very large and will significantly increase their net debt.
After analyzing their impact to their financial position it appears their financial position will remain robust.
Introduction
It seems to be the season for acquisitions, following their $1.8b investment in Cronos (CRON), news has now come through Altria (MO) is likely to acquire a 35% stake in Juul (JUUL) for approximately $13.3b. Although the strength of Altria’s financial position is generally acknowledged within the investment community, since this latest acquisition is quite large, it’s important to assess the impact and the implications moving forward.
