Multinational tobacco firm Altria Group has announced that its subsidiary, UST LLC, has entered into a definitive agreement to sell its Ste. Michelle Wine Estates to Sycamore Partners Management private equity firm for a price of approximately $1.2 billion.
Ste. Michelle Wine Estates is the largest winery in the Pacific Northwest and among the largest premium wineries in the United States, farming more than 30,000 acres and distributing its wines in over 100 countries.
“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,” said Billy Gifford, Altria’s CEO. “Ste. Michelle and its talented employees have built an outstanding portfolio of premium wine brands, and we wish them future success.”
The transaction is expected to be closed during the second half of 2021.