22nd Century Group, a low-nicotine tobacco specialist, will acquire Nasco Products LLC of North Carolina to facilitate widespread distribution of its products in the United States, the company said.

Nasco is a participating company in the Master Settlement Agreement (MSA) and a federally licensed tobacco manufacturer. The acquisition cost of USD 3 million (EUR 2.2 million), includes USD 2 million to purchase cigarette manufacturing machinery, 22nd Century said.
Nasco President Ralph Angiuoli, a former RJ Reynolds Tobacco chief executive, will join the management team at 22nd Century, which is based in Clarence, New York. The biotechnology firm uses genetic engineering to develop tobaccos yielding from 0.5 mg to 30 mg nicotine content per cigarette.
Manufacturing of 22nd Century brands Red Sun and Magic by 22nd Century’s Goodrich Tobacco distribution arm was done by contract manufacturers not part of the MSA.
“We intentionally have delayed expansion of the marketing and distribution of our brands in the United States since the more product we sold, the more difficult and expensive it would be to become a participating manufacturer of the MSA,” said Goodrich President Henry Sicignano. “22nd Century Group owning Nasco Products resolves this issue.”