By Adriano Marchese

 

Altria Group Inc. said Friday that the company subsidiary UST LLC has agreed to sell its Ste. Michelle Wine Estates business to private-equity firm Sycamore Partners Management LP for around $1.2 billion.

The producer and marketer of tobacco, cigarettes and other related products said that as well as the purchase price, Sycamore will also assume certain Ste. Michelle liabilities.

"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," Chief Executive Officer Billy Gifford said.

Altria said it expects the transaction will close in the second half of the year and plans to use the cash proceeds for additional share repurchases.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

July 09, 2021 09:02 ET (13:02 GMT)

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