Altria will sell the Ste. Michelle wine business for $ 1.2 billion
The business will pass into the hands of the private equity firm Sycamore Partners Management
Altria entered into an agreement to sell its US business Ste. Michelle Wine Estates to private equity firm Sycamore Partners Management for approximately $ 1.2 billion. Ste. Michelle produces and sells high quality wines under various labels including Chateau Ste. Michelle, 14 Hands and Stag's Leap Wine Cellars. The company also imports and markets Antinori and Champagne Nicolas Feuillatte brand products in the United States.
The transition is another step for Altria to focus primarily on its tobacco brand portfolio. "Ste. Michelle and her talented employees have built an exceptional portfolio of premium wine brands, and we wish them a successful future", said Billy Gifford, CEO of Altria. David Dearie, president and chief executive officer of Ste. Michelle, added: "The Ste. Michelle team and I are looking forward to working with the Sycamore Partners team and believe we are well positioned to lead the next phase of our growth".
The private equity firm specializes in consumer investment, retail and distribution. Altria, which owns major cigarette brands such as Marlboro, plans to use the net proceeds of the transaction for further share buybacks, subject to board approval. administration. In addition to its tobacco portfolio, Altria also holds equity investments in AB InBev and the Canadian cannabinoid company Cronos Group. The deal is expected to be completed in the second half of 2021, and is subject to ordinary closing conditions.
EFA News - European Food Agency