Imperial Brands Plc: Acquires Black Buffalo to expand US oral portfolio, but looks expensive

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Imperial Brands Plc: Acquires Black Buffalo to expand US oral portfolio, but looks expensive

Equity Research

European Consumer Staples

27 May 2026

Imperial Brands Plc

Acquires Black Buffalo to expand

US oral portfolio, but looks

IMB.L/IMB LN OVERWEIGHTexpensive

European Consumer NEUTRAL

IMB has acquired Black Buffalo, a US modern oral company Staples Price Target GBp 3650

which produces MST long cut and nicotine pouch products. Price (26-May-26) GBp 2789

We think this is positive for IMB NGP growth, providing access Potential Upside/Downside +30.9% Source: Bloomberg, Barclays Research

to new consumers, and broadening its portfolio to

complement Zone. European Consumer Staples

Pallav Mittal

+44 (0)20 7773 1376

Imperial Brands has announced that it has acquired Black Buffalo, a US modern oral company. pallav.mittal@barclays.com

We think this is positive for IMB as the transaction gives it access to new consumers (consumers Barclays, UK

of traditional moist smokeless products) and broadens IMB's NGP portfolio into MST-adjacent

Morayo Adesinaformats (long cut and pouch products) to complement Zone. Given Black Buffalo's products are

+44 (0)20 3134 9537

sold in-store and online, it also gives IMB a better online presence in our view. Note that the morayo.adesina@barclays.com

transaction is immediately effective and Black Buffalo now forms part of IMB's portfolio. Barclays, UK

The initial consideration for the transaction is $150mn with an additional deferred payment Laurence Whyatt

based on performance over three years. Black Buffalo had $25mn sales in 2025 - even if we +44 (0)20 7773 5324

laurence.whyatt@barclays.comassume 30-40% EBITDA margins (long cut/loose leaf products are priced higher and profitable),

Barclays, UK

it implies an EV/EBITDA multiple of 15-20x.