Altria Group Sells Ste. Michelle Wine Estates Business For $1.2B

Altria Group Inc’s MO subsidiary, UST LLC, has agreed to sell its Ste. Michelle Wine Estates business to Sycamore Partners Management, L.P. in an all-cash transaction with a purchase price of $1.2 billion, plus certain liabilities.
Altria expects this transaction to close during the second half of 2021.
Altria expects to record any gain or loss on this transaction and related disposition items, which it does not anticipate being material, in the second half of 2021.
Altria does not expect to account for the results of Ste. Michelle as discontinued operations.
Altria plans to use this sale net proceeds for additional share repurchases.
Altria’s cash and equivalents totaled $5.79 billion as of March 31, 2021.
Price action: MO shares are trading higher by 2.72% at $47.66 on the last check Friday.

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