Vector Group, Ltd. (Vector Group) has announced that its board of directors has approved the plan to spin-off its Douglas Elliman, Inc. business. Once completed, Vector Group will run the tobacco segment of the business while Douglas Elliman will run and operate the real estate services and property technology part of its business.
In a press release, Vector Group’s president and CEO–Howard M. Lorber–issued the following statement: “The Board’s approval of the spin-off paves the way for us to establish Douglas Elliman as an independent publicly traded company in the coming weeks. We are confident this separation is in the best interests of Vector Group, Douglas Elliman, our stockholders, and all our stakeholders. As a standalone company, Douglas Elliman will have a dedicated management team and Board, direct access to the public markets, and additional resources to capitalize on opportunities in the large and growing U.S. residential real estate market.”
Through the subsidiaries Liggett Group LLC and Vector Tobacco, Inc., Vector Group will continue to manufacture and sell cigarettes in the U.S. Douglas Elliman will manage the company’s real estate services and PropTech, its property technology that is currently owned and operated by New Valley, LLC, a subsidiary of Vector Group. Douglas Elliman will be capitalized with approximately $200 million in net cash and cash equivalents.
The spin-off is expected to be completed in late-December. For all the latest news from Vector Group, visit vectorgroupltd.com.