Altria to sell Ste. Michelle Wine Estates business to Sycamore Partners
Altria Group said that its subsidiary – UST LLC has agreed to divest its Ste. Michelle Wine Estates business to Sycamore Partners Management in an all-cash deal worth $1.2 billion.
According to the tobacco giant, Sycamore Partners Management will also assume certain liabilities of Ste. Michelle Wine Estates business as part of the deal.
Altria Group anticipates the deal to be wrapped up during the latter half of this year. The closing will be subject to Sycamore Partners Management getting the required financing and the meeting of customary closing conditions such as antitrust regulatory clearance among others.
Altria Group to sell Ste. Michelle Wine Estates business to Sycamore Partners for $1.2bn. Photo courtesy of Altria Group, Inc.
Billy Gifford – Altria Group CEO said: “We believe the Transaction is an important step in Altria’s value creation for shareholders and allows our management team greater focus on the pursuit of our Vision to responsibly transition adult smokers to a non-combustible future.
“Ste. Michelle and its talented employees have built an outstanding portfolio of premium wine brands, and we wish them future success.”