Multinational tobacco firm Altria Group Inc has announced that its subsidiary, UST LLC, has entered an agreement to sell the Ste Michelle Wine Estates business to Sycamore Partners Management, LP., a private equity firm specializing in consumer, retail, and distribution investments.
According to sources, the sale will enable Altria to focus on their vision of transitioning adult smokes to a ‘non-combustible future’.
Billy Gifford, Altria’s chief executive officer said: “Ste. Michelle and its talented employees have built an outstanding portfolio of premium wine brands, and we wish them future success”.
David Dearie, Ste. Michelle’s president and chief executive officer commented: “The Ste. Michelle leadership team and I look forward to working with the team at Sycamore Partners and believe we are well-positioned to drive the next phase of our growth”.
The deal is expected to close in the second semester of 2021, paid in an all-cash transaction with a price of approximately $1.2 billion.