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Gum Tech

This article was originally published in The Tan Sheet

Executive Summary

Specialty gum manufacturer announces joint venture with Swedish company for international distribution of nicotine gum and other non-tobacco nicotine products. Swedish Match will own 51% of the newly created company in exchange for a capital contribution of $10 mil. Gum Tech will own 49% and contribute certain intellectual property rights. All R&D and manufacturing for the joint venture will take place at Gum Tech's Phoenix, Ariz. facilities. The new firm will have a four-member board, with two members from each partner. Products are expected to launch in 2001. Stockholm-based Swedish Match sells smokeless tobacco, cigars and pipe tobacco
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