As part of its ambitious plans of building a smoke-free future, Philip Morris International Inc. PM agreed to acquire Fertin Pharma A/S, in a transaction worth approximately $820 million. Fertin Pharma is a leading manufacturer and developer of innovative pharmaceutical and well-being products that are based on oral and intra-oral delivery systems. Let’s take a closer look at the aspects associated with this buyout.Benevolent Steps Toward Building a Smoke-Free PortfolioPhilip Morris expects to complete the acquisition in fourth-quarter 2021, by funding the same through existing cash. On completion of the buyout, Fertin Pharma will become a wholly-owned subsidiary of Philip Morris. The acquisition is expected to be immaterial on Philip Morris’ full-year 2021 adjusted diluted earnings per share.Fertin Pharma is a contract development and manufacturing organization, and is currently owned by the global investment organization EQT and Bagger-Sørensen & Co. This privately-held company’s operations are spread across Denmark, Canada and India. It specializes in research, development and production of gums, pouches, liquefiable tablets and other solid oral systems. The company’s operations are focused on the delivery of active ingredients, including nicotine. It is well-known for its unique Nicotine Replacement Therapy (NRT) solutions.Both Philip Morris and Fertin Pharma share the common goal of delivering a smoke-free future and enable people to live healthier lives. Moreover, Philip Morris expects that Fertin Pharma’s superior scientific insights and technologies will enrich the company’s innovation capabilities, especially in the oral delivery platform. This is likely to aid in the formulation, development and commercialization of existing and additional smoke-free platforms. The company is likely to be able to accelerate presence in the fast-growing modern oral category, by providing a broad range of smoke-free products such as nicotine pouches and lozenges.By leveraging Fertin Pharma’s technological capabilities, Philip Morris expects to develop scientifically substantiated botanicals and other selfcare wellness products including over-the-counter solutions and supplements in areas such as sleep, energy, calm and focus. Through this buyout, the company targets to expand offerings that are beyond nicotine. Apart from these, the company expects the acquisition to help broadening reach and access of their smoke-free alternatives to adult smokers around the world.Image Source: Zacks Investment ResearchWrapping UpClearly, Philip Morris is undertaking prudent efforts to pace up consumers’ shift from cigarettes to reduced risk options and build a strong beyond nicotine business. We note that the company’s heated-tobacco product, IQOS, has been gaining immense popularity. As part of its transformation efforts, the company is committed toward expanding IQOS variants to more markets. Among other initiatives, Philip Morris announced a partnership with South Korea’s KT&G in January 2020 to commercialize the latter’s smoke-free products outside the country.Such efforts keep Philip Morris well placed for transforming into a majority smoke-free company by 2025. Earlier this year, the company unveiled its goal of generating more than 50 percent of its total net revenues from smoke-free products by 2025. The company is on track to achieve its 2021 goal of 90-100 billion shipments of heated tobacco units.Shares of the company have gained 12.8% in the past three months compared with the industry’s rise of 3.1%.3 Consumer Staple Stocks You Can’t MissVector Group Ltd. VGR, flaunting a Zacks Rank #1 (Strong Buy), delivered an earnings surprise of 53.2% in the past four quarters, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.Medifast, Inc. MED, also with a Zacks Rank #1, delivered an earnings surprise of 12.7% in the last four quarters, on average.Nomad Foods Limited NOMD has a trailing four-quarter earnings surprise of 10.3%, on average. It carries a Zacks Rank #2.Zacks' Top Picks to Cash in on Artificial IntelligenceIn 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create ""the world's first trillionaires."" Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM): Free Stock Analysis Report Vector Group Ltd. (VGR): Free Stock Analysis Report MEDIFAST INC (MED): Free Stock Analysis Report Nomad Foods Limited (NOMD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research