Jupiter Research: Big-Time Acquisition Expands Market Share for Vape Company
Jul 22, 2019 10:15PM
Jupiter Research, one of the more established inhalation and vaporization technology manufacturers, proved its value when it was acquired for $210 million in January by Tilt, a vertically-integrated infrastructure and technology cannabis company with a vision of providing value to all cannabis retailers through software, infrastructure, access to capital, and more.
Jupiter had revenue of $105 million in 2018, according to a press release announcing the purchase by Tilt. Jupiter manufactures three different styles, or “platforms,” of vaporizers, plus a fillable dose specific cartridge.
Tilt is a Canadian company actually based out of Boston, Massachusetts, according to Kaila Strong, the director of marketing for Jupiter Research. Tilt was looking for a deal with a hardware manufacturing company, and noticed Jupiter, a company that produces power supplies and cartridges for cannabis oil. “We have been getting integrated into that company since January,” Strong says.
Jupiter was founded in December 2015, and has 35 employees working at its 12,000-square-foot Phoenix, Arizona, headquarters, where the company does customized bulk printing and packaging for its line of vapes. There are also customer-service and business-development staff there, as well as a full lab where they conduct research and development.
Tilt announced in early December that it had raised $119 million through an initial public offering, which enabled it to start trading on the Canadian Securities Exchange. As a result of the Tilt deal, Jupiter is now part of a company trading on the Canadian Stock Exchange.“We are developing products for Tilt, focused on utilizing the full supply chain to develop products important to our portfolio of brands,” Strong says. “The new product landscape for us is adapting existing products that we have today and increasing the effectiveness of our products with the vast majority of oils on the market now.”
She says that they are continually improving their products, including manufacturing with engineered thermoplastics that improves the compatibility with a wide variety of extracts. But there is a bit of a hitch in the manufacturing process. “All of those components the cartridges and the batteries are made in Shenzhen, China,” she says. “Chinese tariffs affected many manufacturers who are importing products, with the unfortunate result of increasing costs to customers. Everyone is in the same boat when it comes to batteries and cartridges and tariffs.”
Since this isn’t a plant-touching product, Jupiter can sell to other U.S. states that allow shipping in vape products, and export to other countries, such as Israel, Argentina, Chile and Eastern and Western Europe.
For more information, visit: